US mortgage applications rise 0.5%

US mortgage applications rose 0.5% in the week ended 10 May, according to the Mortgage Bankers Association of America, following on from a 2.6% jump in the previous week.

Last week's drop comes alongside a 10 basis point reduction in the average mortgage.

Applications to refinance a mortgage jumped by 5% from the previous week, while applications to purchase a home dropped by 2%.

Reporting by Iain Gilbert at Sharecast.com