US mortgage applications down by 3.7%
Mortgage applications in the United States, calculated on a seasonally adjusted basis, dropped 3.7% in the week ending May 26, the Mortgage Bankers Association (MBA) said in a report published on Wednesday. The previous week, the number of applications decreased by 4.6%.
The 30-year mortgage rate jumped to 6.91%, increasing from the reading of 6.69% registered the week before, to mark its highest level since the first week of November 2022. "Application volumes for both purchase and refinance loans decreased last week due to these higher rates," MBA’s Chief Economist Michael Fratantoni explained.
Fratantoni highlighted that refinancing demand is predominantly influenced by the rates, while the scarcity of homes for sale continues to limit the volume of purchases.