Applications for U.S. loans to buy homes rose slightly last week amid a marginal drop in U.S. mortgage rates, an industry group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted market index, a measure of weekly mortgage activity, rose for the week ending June by 0.1 percent to 601.2 from the previous week's 600.6.
The trade group's purchase index, a gauge of loan requests for home purchases, rose last week by 1.1 percent to 454.5 from 449.5 in the prior week.
"Even as the refinance index has collapsed, the purchase index has held up quiet well. We are still at very high levels," said Stephen Stanley, chief economist at RBS Greenwich Capital Markets on Tuesday before the report was released.
The Washington trade group's seasonally adjusted refinancing index fell by 1.7 percent to 1,454.6 from the previous week's 1,479.4.
Average 30-year mortgage rates, excluding fees, fell by 13 basis points to 6.21 percent.
"Even though rates are higher, they are still low by historical standards," said Stanley. "Until mortgage rates rise to a level that is an outright discouragement to buy, you will see healthy housing demand."