Mortgage application volume continued to drop last week – even though rates decreased slightly.
It was the third consecutive week that total volume fell.
According to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey, total applications dropped 3.9% on an adjusted basis during the week ended May 30.
Applications for refinances decreased 4% compared with the previous week but were up 42% compared with the same week one year ago.
Applications for purchases also decreased 4% compared with the previous week but were up 18% compared with the same week one year ago.
It should be noted that total volume is well below historical norms.
“Most mortgage rates moved lower last week, with the 30-year fixed rate declining to 6.92 percent and staying in the 6.8 percent to 7 percent range since April,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Mortgage applications decreased over the week but continue to exhibit annual gains, with purchase applications running 18 percent ahead of last year’s place.”
“Government purchase applications were little changed over the week driven by a slight increase in FHA purchase applications,” Kan adds. “Refinance activity fell across both conventional and government segment and the overall average refinance loan size was the smallest since July 2024, as potential borrowers hold out for larger rate drops.”
The refinance share of mortgage activity increased to 35.2% of total applications, up from 34.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.
Photo: David Kristianto