The index accounts for home purchase and refinancing loans, rising 15.5% last week as unemployment rates were announced as markedly improved employment numbers. Home purchases saw gains of 12.5% while refinancing apps jumped 17.2%.
Last week marks the largest increase in mortgage applications since mid June of last year.
“Taking into account typical seasonal patterns, purchase applications rose to their highest level of the year last week. On an unadjusted basis, purchase application activity is the highest since last May,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.
Fratantoni continued, saying, “An improving job market is beginning to pave the way for an improving housing market. Additionally, mortgage interest rates remained below 5 percent for a second week, maintaining affordability for buyers and leading to an increase in refinance applications.”