Mortgage application volume continued to trend downward during the week ending May 30, dropping 3.1% compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
The results include an adjustment for the Memorial Day holiday. On an unadjusted basis, the index decreased 14% compared with the previous week.
Refinance application volume decreased 3% from the previous week, on an adjusted basis, while purchase applications fell 4%.
On an unadjusted basis, purchase application volume decreased 15% compared with the previous week and was 17% lower than the same week one year ago.
The refinance share of mortgage activity increased to 53% of total applications, up from 52% the previous week.
The drop in volume came as interest rates reached their lowest levels in close to a year.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.26%, down from 4.31% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.22%, down slightly from 4.23% the week prior.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 3.99%, down slightly from 4.04% the previous week.
The average rate for a 15-year FRM was 3.39%, down from 3.42% the previous week.
The average rate for a 5/1 adjustable rate mortgage (ARM) was 3.11%, down from 3.13% the week prior.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8% of total applications.