It's late May and spring home shoppers have hardly come out of hibernation – begging the question, will they ever?
According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, application volume decreased 1.2%, on an adjusted basis, during the week ending May 23, compared to the week prior.
On an unadjusted basis, the index decreased 2% compared with the previous week.
Refinance application volume decreased 1% from the previous week – this, despite the fact that mortgage rates have, on average, fallen for the past several weeks and remain at historic lows.
Applications for purchases decreased 1%, on an adjusted basis, from one week earlier. On an unadjusted basis purchase application volume was down 2% compared with the previous week and was 15% lower than the same week one year ago.
It was the third straight week that purchase volume fell. Purchase application volume increased 9% during the first week of May only to recede back to winter levels again the following week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.31%, down from 4.33% the week prior.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.23%, down slightly from the previous week when it was 4.24%.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.04%, down slightly from 4.06% the previous week.
The average rate for a 15-year fixed-rate mortgage was 3.42%, down from 3.43% the week prior.
The average rate for a 5/1 adjustable-rate mortgage was 3.13%, down from 3.14% the previous week. The ARM share of activity remained unchanged at 8% of total applications.
All rates are based on closings.
