Mortgage applications increased last week thanks to a strong uptick in purchase demand.

According to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending June 2, mortgage applications increased 7.1% from one week earlier.

However, it’s important to note the data included an adjustment for the Memorial Day holiday.

Broken up, the Refinance Index increased 3% from the previous week.

Meanwhile, jumping to its highest level since May 2010, the seasonally adjusted Purchase Index increased 10% from one week earlier.

The refinance share of mortgage activity came in at 42.1% of total applications, falling from 43.2% the previous week. The adjustable-rate mortgage share of activity decreased to 7.4% of total applications.

The Federal Housing Administration’s share of total applications increased to 10.6% from 10.5% the week prior, while the Veterans Affairs’ share of total applications increased to 11.1% from 10.8% the week prior.

The Department of Agriculture’s share of total applications remained frozen at 0.8% from the week prior.

As for the various mortgage products, mortgage rates managed to stay relatively low.  

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November 2016, 4.14%, from 4.17%.

Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to its lowest level since November 2016, 4.08%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to its lowest level since December 2016, 4.01%, from 4.03%.

The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since November 2016, 3.39%, from 3.42%, while the average contract interest rate for 5/1 ARMs also decreased to its lowest level since November 2016, 3.19%, from 3.22%.