Mortgage application volume decreased 4.1% on an adjusted basis during the week ended May 27, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances decreased 4%, on higher rates, while applications for purchases decreased 5%.
On an unadjusted basis, total application volume decreased 5% compared with the previous week. Applications for purchases decreased 6%, on an unadjusted basis, but increased 28% compared with the same week one year ago.
The refinance share of mortgage activity increased to 54.3% of total applications from 53.7% the previous week.
Mortgage rates were either flat or moved slightly downward despite rumors that the Fed would likely vote later this month to raise short-term interest rates. The average rate for a 30-year, fixed-rate mortgage (FRM) stayed flat compared with the previous week – at 3.85% – while the average rate for a 30-year jumbo FRM was 3.81%, down slightly from 3.82%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.65%, down from 3.70%.
The average rate for a 15-year FRM was 3.12%, up from 3.06%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.00%, down from 3.09%.
The ARM share of activity decreased to 5.0% of total applications.
Looking at volume by loan type, applications for mortgages backed by the FHA comprised about 12.5% of all applications – down from 12.7% the week prior. The Veterans Affairs share of total applications was 12.0%, up from 11.5%. The U.S. Department of Agriculture share of total applications remained unchanged at 0.7%.