Home Mortgage Applications rose last week driven by high demand for mortgage refinance as interest rates dropped, industry data showed on Wednesday.
The Mortgage Bankers Association (MBA) reported its seasonally adjusted index of mortgage application activity, which includes both refinancing and home buying demand, increased 1.8 percent in the week ending April 26.
The MBA's seasonally adjusted index of mortgage refinance applications climbed 2.8 percent last week. However, the number of new loans for home purchases, a leading indicator of home buying, slipped 1.4 percent.
The mortgage refinance share of total mortgage activity remained unchanged at 75% of applications.
Fixed 30-year mortgage rates averaged 3.60 percent, down 5 basis points from 3.65 percent. It was the lowest level seen for rates since late last year.
According to MBA, the survey covers over 75 percent of U.S. retail residential mortgage applications.