Highlights
MBA's purchase application index continued to show improvement, up 1.3 percent to 438.1 in the May 18 week. The four-week average rose 1.6 percent to 434.0. MBA's data, showing solid improvement since mid-April, are offering one of the few positive indications on the housing market and may help to lift what are otherwise very cautious expectations for new home and existing home sales data tomorrow and Friday.

Demand for refinancing firmed despite a jump in mortgage rates. The refinancing index rose 1.9 percent to 2,154.7 with refinancings making up 42.3 percent of all applications, up 2 tenths on the week. The average rate on 30-year fixed mortgages rose 10 basis points in the week to 6.23 percent.