Highlights
The Mortgage Bankers' purchase index fell 2.5 percent in the May 25 week to a 427 level that is just below the four-week average of 433.9. Unlike some housing data such as existing home sales, Mortgage Banker data have been showing improvement over the past two months.

But rising interest rates may threaten whatever rebound the housing market is seeing. Thirty-year fixed mortgages averaged 6.32 percent, up 9 basis points in the week. Higher rates appear to be having a more immediate effect on refinancing, with MBA's index down 13% in the week to 1,874.6.

The housing sector remains the weak spot of the economy. Construction spending data will be released tomorrow.