Purchase Product Mix Reflects Higher Home Prices

Purchase Product Mix Reflects Higher Home Prices

Even though mortgage interest rates moved lower again last week, application activity continued to decline. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, decreased 2.3 percent on a seasonally adjusted basis and 3.0 percent before adjustment during the week ended May 27. The Refinance Index fell another 5 percent from the previous week, leaving it down by 75 percent from its level during the same week in 2021. Refinancing made up 31.5 percent of the application volume. It had a 32.3 percent share the previous week. [refiappschart] The seasonally adjusted Purchase Index decreased 1 percent from one week earlier and 2 percent unadjusted. Purchase applications declined 14 percent year-over-year. [purchaseappschart]