The Mortgage Bankers Association (MBA) reported on Wednesday that the
mortgage application volume in the U.S. slumped 4.6 percent in the week ended May
19, following a 5.7 percent tumble the week before.
According to the MBA’s data, last week’s plunge in mortgage applications
reflected a 5.4 percent decline in mortgage
refinance applications and a 4.3 percent drop in mortgage applications to
purchase a home.
The report also revealed that the average fixed 30-year mortgage rate increased from 6.57
percent to 6.69 percent, its highest level since the week ended March
10 (6.71 percent).
Commenting on the latest survey results, Joel Kan, the MBA's vice president
and deputy chief economist, noted that mortgage applications declined last week
as borrowers remained sensitive to changes in mortgage rates, which rose along with
Treasury yields, responding to the uncertainty around the U.S. debt ceiling and
remarks from several Federal Reserve officials.