Mortgage Applications Fall as 30Year Rate Hits New High



Mortgage applications fell again last week as mortgage rates were mixed, according to the Mortgage Bankers Association.

The MBA reported on Wednesday that the seasonally adjusted index of mortgage application activity for the week ended May 26 fell 1.9% from the previous week.

The purchase index fell 0.2%. This index is considered a timely gauge of U.S. home sales.

The seasonally adjusted index of refinancing applications fell 4.8%. The share of refinancing among total mortgage activity decreased to 34.9% of the market.

Historically low mortgage rates have helped to support the U.S. economy through a five-year housing boom.

The rates on a 30-year fixed-rate mortgage have now risen to 6.66%, up 0.05% from one week earlier. This matches a four-year high reached two weeks ago.

Fifteen-year fixed-rate mortgages averaged 6.22%, down by 0.01%. Rates on one-year ARMs increased to 6.09%.

Analysts argue about whether there is a housing bubble with the potential of a bust. But most agree that the market is slowing down.

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Mortgage Applications Fall as 30Year Rate Hits New High




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