Activity in the housing market showed a rebound in the past week as mortgages rates fell for a fifth straight week.
The 30-year fixed mortgage rate inched lower to 6.18%.
The Purchase Index increased 3% from one week earlier.
Interest was seen in one particular area, according to the Mortgage Bankers Association's weekly survey.
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"The average loan size on a purchase application increased to $428,500 – the largest average since May 2022," said Joel Kan, MBA’s vice president and deputy chief economist. "This increase is a sign that the recent upward trend in purchase activity remains skewed toward larger loan sizes and less first-time homebuyer activity, as entry level housing remains undersupplied, and buyers struggle with affordability in many markets."
Overall, mortgage loan application volume increased 7.4% from a week earlier.
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"Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of lower rates," added Kan. "Overall applications remained 58% lower than a year ago and rates are still significantly higher, however, this week’s results are a step in the right direction."
The Refinance Index saw a big jump, rising 18% from the previous week.
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The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.
