Mortgage applications jumped 12.5% last week as mortgage rates held steady, and housing supply increased in some parts of the country, the Mortgage Bankers Association said, citing its Weekly Mortgage Applications Survey.          

The average contract interest rate for conforming 30-year mortgages of $806,500 or less ticked one basis point higher to 6.93% from 6.92% the week before, while the rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration slid to 6.60% from 6.68%.     

By mortgage type, purchase applications were up 10% week over week and 20% year over year, while refinancing activity was up 16% week over week and 28% year over year.  

“Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers,” MBA Deputy Chief Economist Joel Kan said. “The rate for 15-year, fixed-rate loans and FHA loans saw declines last week, while the 30-year fixed rate was largely unchanged.  

“Purchase applications were 20% ahead of last year’s pace, continuing to show strength compared to a year ago. Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets.”