Mortgage Application Volume Deflated by Rising Rates

Mortgage Application Volume Deflated by Rising Rates

The volume of mortgage applications, which had risen by more than 6 percent the prior week lost nearly all those gains during the week ended May 12. The Mortgage Bankers Association said its Market Composite Index decreased 5.7 percent on a seasonally adjusted basis from one week earlier and 6 percent on an unadjusted basis. The Refinance Index decreased 8 percent from the previous week and was 43 percent lower than the same week one year ago. Refinancing applications accounted for 27.4 percent of the total compared to 28.0 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index was 4.8 percent lower than the previous week and 5 percent lower on an unadjusted basis. Purchase applications were down 26 percent year-over-year.    [purchaseappschart]