The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. tumbled 5.7 per
cent in the week ended May 24, following a 1.9 per cent climb the week before. This represented the first decline in total
mortgage application volume in four weeks, the pace of which was also the steepest
since the week that ended February 16 (-10.6 per cent).
According to
the MBA’s data, last week’s drop in mortgage applications was primarily due to
a 13.6 per cent plunge in mortgage refinance applications. In addition, mortgage
applications to purchase a home fell 1.1 per cent.
The report also
revealed the average fixed 30-year mortgage rate from 7.01 per cent to 7.05 per cent, recording its first advance in four weeks.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted 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,” he added.