Refis Take a Back Seat as Purchase Demand Rebounds

Mortgage applications rose 1.9% last week on a seasonally adjusted basis, the Mortgage Bankers Association said Wednesday. Purchase demand drove the gain, climbing 6% from the prior week. Purchase volume also edged 0.2% above the same week a year ago. Refinancing fell 2%. It still sat 7% above last year's level.

The 30-year conforming rate hit 6.69%, the highest since August. "Growing home inventory in many markets is supporting more purchase activity," said Mike Fratantoni, MBA's chief economist. He pointed to June inflation data dropping. A rebound in oil prices could push mortgage rates higher, he said.