Source: Sharecast
The MBA's Market Composite Index showed that mortgage applications fell 5.1% in the week ended 16 May, following a 1.1% increase the previous month. This was the first decline in three weeks.
Applications for refinancing fell 5% from the previous week, but were 27% higher than the same time last year.
Meanwhile, purchase volumes were also down 5% on the week, but 13% higher than last year.
“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,” said Mike Fratantoni, MBA’s senior vice president and chief economist.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.92% last week, up from 6.86% the week before. The average rate on mortgages for larger loans rose to 6.94% from 6.85%.
“Higher rates, including the 30-year fixed rate increasing to 6.92%, led to a slowdown across the board. However, purchase applications are up 13% from one year ago," Fratantoni said.