U.S. weekly mortgage applications increase 0.3 percent

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. increased 0.3 percent in the week ended May 8, following a 0.1 percent uptick in the previous week.

According to the report, refinance applications decreased 3.3 percent, while applications to purchase a home surged 10.6 percent.

Meanwhile, the average fixed 30-year mortgage rate rose to 3.43 percent from a record low 3.40 percent.

"There continues to be a stark recovery in purchase applications, as most large states saw increases in activity last week," noted MBA economist Joel Kan. "We expect this positive purchase trend to continue - at varying rates across the country - as states gradually loosen social distancing measures, and some of the pent-up demand for housing returns in what is typically the final weeks of the spring homebuying season."