Mortgage loan applications decreased by 16.2% in the final week of May, as average mortgage rates moved up almost 50 basis points, according to the weekly survey from the Mortgage Bankers Association. Compared to the same four-day week from last year, however, loan volume was up 14.4%.
Analysts often look to the 4-week moving average to get a fuller picture of the market. With this week’s data that average is now down 9.0%.
The Refinance Index fell 24.1% in the week, but the Purchase Index gained 4.3%.
Refinance-related loans accounted for 62.4% of all loans in the week, compared to 69.3% of loans in the prior week. Adjustable-rate mortgages made up 3.0% of all loans, more than the 2.6% reported in the previous week.
The average interest rate for a 30-year fixed-rate mortgage increased rapidly to 5.25% in the week from 4.81%. The trend upwards is continuing this week, according to BankRate.com, which puts the current average 30-year rate at 5.36%.
The MBA says the survey covers about half of all new loans.