Mortgage Applications Fall, Despite Lower Rates
Mortgage applications softened last week, ending a three-week streak of rises in loan demand, the Mortgage Bankers Association reports. Applications dropped despite 30-year fixed-rate mortgages moving to their lowest averages in nearly a year.
Mortgage applications, which reflect applications for refinancings and home purchases, fell 1.2 percent for the week ending May 23, the MBA reports. Broken out, purchase applications, viewed as a leading gauge of future home sales, dropped 2 percent on an unadjusted basis during the week, while applications for refinancings dropped 1 percent compared to the previous week.
Purchase applications are 15 percent lower than a year ago.
The average on 30-year fixed-rate mortgages for the week fell from 4.33 percent to 4.31 percent.
Source: “U.S. Mortgage Application Volume Down 1.2% Last Week, MBA Says,” The Wall Street Journal (May 28, 2014)