Mortgage application volume fell 1.5% on an adjusted basis during the week ended May 15, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
It was the fourth consecutive week that mortgage application volume fell on a week-over-week basis. Volume fell 3.5% the week ended May 8 and 4.6% the week ended May 1, despite it being the height of the spring home shopping season.
On an unadjusted basis, volume fell 2% compared with the previous week.
Applications for refinances increased 0.3% while applications for purchases fell 4%.
On an unadjusted basis, applications for purchases were down 4% compared with the previous week and were down 11% compared to the same week one year ago.
‘Mortgage rates increased last week, and Treasury rates increased to a recent high at mid week before falling at the end of the week,’ says Mike Fratantoni, chief economist for the MBA, in a release. ‘Overall purchase activity fell for the week, along with conventional refinance volume, but government refinance volume increased. The level of purchase applications remained 11 percent higher than the same week last year, but the drop this week may indicate borrowers being wary of the recent run up in mortgage rates.’
The refinance share of mortgage activity increased to 52% of total applications from 51% the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with jumbo loan balance (greater than $417,000) was 4.04%, up from 3.99% the previous week.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 3.80%, up from 3.76%.
The average rate for a 15-year FRM was 3.26%, up from 3.23%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.99%, up from 3.00%.
The ARM share of activity increased to 6.4% of total applications.
All rates are based on closings. The survey covers over 75% of all U.S. retail residential mortgage applications.