Mortgage application volume fell 5.1% during the week ended May 16, as the average rate for a 30-year fixed-rate mortgage increased to 6.92%, up from 6.86% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 5% compared with the previous week but were up 27% compared with the same week one year ago.
Applications for purchases also decreased 5% compared with the previous week but were up 13% compared with the same week one year ago.
“Mortgage rates jumped to their highest level since February last week, with investors concerned about rising inflation and the impact of increasing deficits and debt,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Higher rates, including the 30-year fixed rate increasing to 6.92 percent, led to a slowdown across the board. However, purchase applications are up 13 percent from one year ago.”
The refinance share of mortgage activity increased to 36.6% of total applications, up from 36.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.
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