Mortgage applications posted a 0.2% increase from a week earlier, with the purchase index rising 0.3%, the Mortgage Bankers Association said Wednesday.

"The uptick in purchase applications, which are still at a two-year high, emphasizes consumer confidence in the economy and jobs, with home value appreciation further spurring an increase of available homes on the market," said Jim Svinth, chief economist for loanDepot.

He added, "The relatively steady levels of applications is encouraging as it signals the housing market is heading toward stabilization."

Quicken Loans Chief Economist Bob Walters added, "Despite a housing market that is struggling for available inventory, the continued demand for homeownership is music to the economy’s ears. Better yet, many traditional buyers seem to be re-entering the market making for a stronger recovery."