Mortgage applications fell 3.7% from the week earlier on a seasonally adjusted basis, declining for the third straight week as mortgage rates climbed t𝔉o the high𝕴est since November. 

On an unadjusted basis, the Mortgage Bankers Association’s Market Composite Index decreased 5% from the previous week. The weekly average for mortgage rates for the week ending May 26 was 6.9%, the highest it has been since November, according to the MBA. 

“Inflation is still running too high, and recent economic data is beginning to convince investors that the Federal Reserve will not be cutting rates anytime soon," said Mike Fratantoni, MBA’s SVP and chief economist.

The seasonally adjusted Purchase Index decreased 3% from the week before. On an unadjusted basis, the Purchase Index was 31% lower than it was the same week one year ago. Would-be homebuyers are sitting out of the market as rates climb and home price 澳洲幸运5官方开奖结果体彩网:declines stall. As a result, 澳洲幸运5官方开奖结果体彩网:inventory is low and competition for available homes is high, causing 澳洲幸运5官方开奖结果体彩网:purchases to fall. 

“Application volumes for both purchase and refinance loans decreased last week due to these higher rates. While r꧟efinance demand is almost entirely driven by the level of rates, purchase volume continues to be constrained by the lack of🎀 homes on the market,” Fratanoni said. 

MBA’s Refinance Index also fell 7% from the prevඣious week and wa♌s 45% lower than the same week one year ago. The refinance share of mortgage activity decreased to 26.7% of total applications, from 27.4% the week before. The adjustable rate mortgage share of activity increased to 6.8% of total applications. 

Rates increase across the board

The average contract interest rate for 30-year fixed-rate mortgages with confoไrming loan balances incre🔜ased to 6.91% from 6.69% the week before. 

For 30-ye🉐ar fixed-rate mortga𝓡ges with jumbo loan balances, the average contract interest rate increased to 6.78% from 6.57% the week prior. 

For loans backed by the Federal Housing Authority, the average contract interest rate for 3ꦰ0-year fixed-rate mortgages increased to 6.85% from 6.56% the week before. 

The FHA share of total applications increased to 12.7% from 12.5% the week before. The Veterans Affairs share of total applications decreased to 12.1% from 12.5% the week before. The USDA share of total applications was unchanged at 0.5%.