Borrowers jump back in to real estate

Mortgage application activity rose recently for the first time since mid-May, the Mortgage Bankers Association reported on Wednesday.

Hefty declines in refinancings had kept the market composite index — a measure of home loan application volume — in a rut, but last week’s rush on lenders pushed the index up 6.6 percent on a seasonally adjusted basis from the week before.

Applications to purchase homes were up for the second consecutive week, with the purchase index climbing 7.2 percent last week after a 1.5 percent increase two weeks ago, Inman News Service reported.

The adjustable-rate mortgage share of activity increased to 18.7 percent last week from 17.8 percent of total applications at the end of May.

Long-term interest rates were higher for the fourth straight week, with the average rate on 30-year fixed-rate mortgages jumping to 6.61 percent from 6.35 percent and the 15-year fixed rate up to 6.28 percent from 6.13 percent. The one-year ARM, however, saw its average rate drop from 5.74 percent to 5.48 percent.