Mortgage application volume decreased 7.6%, on an adjusted basis, during the week ended May 29 compared to a week earlier, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
The results include an adjustment to account for the Memorial Day holiday. It was the sixth consecutive week during which mortgage application volume declined on a week-over-week basis.
On an unadjusted basis, volume fell 17% compared with the previous week.
Applications for refinances fell 12% while applications for purchases decreased 3%.
On an unadjusted basis, applications for purchases decreased 14% compared with the previous week and were 14% higher compared to the same week one year ago.
The refinance share of mortgage activity decreased to 49% of total applications, down from 51% the previous week to reach the lowest level since May 2014.
The drop in applications for refinances came despite a slight drop in fixed interest rates. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.02%, down from 4.07% the week prior.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.01%, down from 4.06% the previous week.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.77%, down from 3.83%.
The average rate for a 15-year FRM was 3.27%, down from 3.29%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.97%, down from 3.04%.
The ARM share of activity decreased to 6.1% of total applications.
Looking at applications volume by loan type, the FHA share of total applications was 14.9%, up from 14.5% the week prior. The Veterans Affairs share of total applications was 12.0%, up from 11.7% the week prior. The U.S. Department of Agriculture share of total applications was 1.0%, up from 0.8% the week prior.
All rates are based on closings.