Mortgage and refinance applications increased this past week as interest rates eased, stimulating housing activity amid growing economic uncertainty.
According to new data from the Mortgage Bankers Association released on May 7, mortgage applications surged 11 percent from the previous week for the week ending May 2. Refinance application volumes also rose by 11 percent and are up 51 percent from a year ago.
The increase in homebuying activity was driven partly by a tepid decline in mortgage rates.
The 30-year mortgage rate dropped 5 basis points to 6.84 percent this past week, its second straight weekly drop. This remained below the year’s peak of 7.18 percent.
Traditionally, the 30-year fixed mortgage rate tracks the yield on the benchmark 10-year Treasury security….