Mortgage application volume fell 15.3 percent on a seasonally adjusted basis during the week ended May 30 to its lowest level since 2002, according to the latest weekly survey from the Mortgage Bankers Association.
On an adjusted basis, application volume plummeted 24.2 percent from the previous week and was off 20.3 percent from the same week a year earlier.
The slide in application volume was led by a 25.7 percent decrease in refinance activity and a 5.4 percent drop in purchase activity.
The refinance share of total applications fell to just 40.6 percent, down from 46.1 percent a week earlier as interest rates continued to march higher.
The traditional 30-year fixed-rate mortgage averaged 6.17 percent, up from 5.96 percent a week earlier.
The 15-year also surged, climbing nearly a quarter-point to 5.7 percent from 5.49 percent last week.
The only relief, if you can call it that, was the one-year adjustable-rate mortgage, which fell to 6.8 percent from 6.92 percent the prior week.
However, the ARM share of activity still fell during the week to just 8.7 percent of total applications, down from 9.3 percent.
The MBA’s weekly survey, compiled every week since 1990, covers about half of all U.S. retail residential mortgage applications.
It should be noted that the index only covers retail originations, which have clearly increased as a result of wholesale’s demise.
Additionally, the index doesn’t address the perceived surge in denied applications as tighter credit conditions and falling property values have surely made it more difficult to get approved.
(photo: planetbene)
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