In the latest Mortgage Bankers Association Weekly Application Survey, the benchmark Market Composite Index increased by 0.1 % from one week earlier on a seasonally adjusted basis.

Even as the 30-year fixed-rate mortgage reached a record low of 3.4% as of May 1, compared to a year ago, purchasing applications declined while refinancing continued to stir, as has been the trend in this era of uncertainty brought on by the coronavirus outbreak.

Nonetheless in an encouraging sign, purchasing activity increased from one week ago, thus marking a three-week climb, which, according to the MBA, indicates a release of pent-up homebuying demand as more states reopen and relax stay-at-home orders. The 30-year mortgage rate decreased by 3 basis points from one week prior.

As the above figure suggests, the Index and the 30-year FRM rate often move in opposite directions. This trend has been particularly apparent since the end of 2019. As has been noted before, the average interest rate determined by Freddie mac’s monthly Primary Mortgage Market Survey also dropped from March by 14 basis points to a record low of 3.31%, as of the April reading.