Mortgage applications decreased 11% on a seasonally adjusted basis from one week earlier, according to Market Composite Index data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 13.
The Refinance Index decreased 10% from the previous week and was 76% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 12% from one week earlier. The unadjusted Purchase Index decreased 12% compared with the previous week and was 15% lower than the same week one year ago.
“Mortgage applications decreased for the first time in three weeks, as mortgage rates – despite declining last week – remained over two percentage points higher than a year ago and close to the highest levels since 2009. For borrowers looking to refinance, the current level of rates continues to be a significant disincentive,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Purchase applications fell 12 percent last week, as prospective homebuyers have been put off by higher rates and worsening affordability conditions. Furthermore, general uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search.”
The refinance share of mortgage activity increased to 33% of total applications from 32.4% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 10.3% of total applications.
The FHA share of total applications increased to 11.1% from 10.5% the week prior. The VA share of total applications remained unchanged at 10.5%. The USDA share of total applications remained unchanged at 0.5%.