Mortgage application volume increased 1.9% during the week ended May 17, as the average rate for a 30-year- fixed-rate mortgage fell to to 7.01%, down from 7.08% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 7% compared with the previous week and were up 21% compared with the same week one year ago.
Applications for purchases decreased 1% compared with the previous week and were down 11% compared with the same week one year ago.
“The 30-year fixed mortgage rate declined for the third straight week, dropping to 7.01 percent – the lowest level in seven weeks,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications. VA refinances had a double-digit increase for the third consecutive week, although the current level of refinancing is still well below its historical average. Purchase activity continues to lag despite this recent decline in rates, down 11 percent from a year ago, as potential buyers still face limited for-sale inventory and high list prices.”
The refinance share of mortgage activity increased to 34% of total applications, up from 32% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.6% of total applications.
Photo: Scott Graham