The number of mortgage applications filed by U.S. borrowers rose to 1.3% for the seven-day period ending June 1 when compared to a week earlier, an industry trade group said.

The Mortgage Bankers Association also reported the refinance index edged up 2% from the previous week to its highest level since Feb. 10.

In contrast, the seasonally adjusted purchase index declined from a week earlier to its lowest level since April 13.

Refinancing activity continued to dominate with refinancings making up 78% of all mortgage applications, up slightly from 77% a week earlier.

In May, approximately 85% of home purchase applications were 30-year, fixed-rate loans. Seven percent of the applications were for 15-year, fixed-rate loans and 6% were ARMs.

The average contract interest rate for a 30-year, FRM with conforming loan balances declined from 3.91% to 3.87%, the lowest rate in the history of the survey.

In addition, the average contract interest rate for the 30-year, fixed-rate mortgage with a jumbo balance declined from 4.23% to 4.13%, the lowest rate in the survey's history. Meanwhile, the average contract interest rate for the 30-year, FRM backed by the FHA remained unchanged at 3.70%.

kpanchuk@housingwire.com