Mortgage Applications Decline in the Week Ending May 24th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, May 24th, the Market Composite Index—a measure of mortgage loan application volume—decreased 5.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6.3% compared with the previous week.

The Refinance Index decreased 14.0% from one week ago but was 12.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 1.0% compared with one week ago. The unadjusted Purchase Index decreased 3.0% compared with the previous week and was 10.0% lower than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Economist Joel Kan said:

“Mortgage rates increased for the first time in four weeks, with the 30-year fixed rate up to 7.05% and all other loan types also seeing increases. 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. 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.”