Mortgage application volume tumbled 5.7% during the week ended May 24, as the average rate for a 30-year fixed-rate mortgage increased to 7.05%, up from 7.01% last week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 14% compared with last week but were up 12% compared with the same week one year ago.
Applications for purchases decreased 1% compared with last week and were down 10% compared with the same week one year ago.
“Mortgage rates increased for the first time in four weeks, with the 30-year fixed rate up to 7.05 percent and all other loan types also seeing increases,” says Joel Kan, vice president and deputy chief economist, in a statement. “The uptick in rates led to a decline in mortgage applications heading into Memorial Day weekend. Both purchase and refinance applications fell, pushing overall activity to the lowest level since early March.
“Borrowers remain sensitive to small increases in rates, impacting the refinance market and keeping purchase applications below last year’s levels,” Kan adds. “There continues to be limited levels of existing homes for sale and many buyers are struggling to find listings in their price range that meet their needs.”
The refinance share of mortgage activity decreased to 31.3% of total applications, down from 34% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.4% of total applications.
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