Mortgage Applications Decline in the Week Ending May 31st

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, May 31st, the Market Composite Index—a measure of mortgage loan application volume—decreased 5.2% on a seasonally adjusted basis from one week earlier. This week’s results include an adjustment for the Memorial Day holiday.

On an unadjusted basis, the Index decreased 16.0% compared with the previous week.

The Refinance Index decreased 7.0% from one week ago but was 5.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 4.0% compared with one week ago. The unadjusted Purchase Index decreased 16.0% compared with the previous week and was 13.0% lower than the same week one year ago.

Adding background and analysis to this week’s survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said,

“Mortgage rates moved slightly higher last week, with the 30-year conforming rate reaching 7.07%—its highest level since early May—despite incoming data indicating somewhat slower economic growth. After adjusting for the Memorial Day holiday, both purchase and refinance application volumes were down, with purchase activity specifically 13% below last year’s level.”

Government purchase volume was down less, helped by growth in VA applications. The market is relying on first-time homebuyer demand, and many first-time buyers do use government lending programs.”