Mortgage application activity slowed again for the week ending May 31, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, was down by 5.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index plummeted by 16% compared with the previous week.
The seasonally adjusted Purchase Index decreased 4% from one week earlier while the unadjusted index was 16% lower from the previous week and was 13% lower than the same week one year ago.
The Refinance Index decreased 7% from the previous week and was 5% higher than the same week one year ago. The refinance share of mortgage activity dipped to 31.1% of total applications from 31.3% the previous week.
Among the federal programs, the FHA share of total applications increased to 13.2% from 12.7% the week prior while the VA share of total applications increased to 12.1% from 12.0% and the USDA share of total applications decreased to 0.3% from 0.4%.
“After adjusting for the Memorial Day holiday, both purchase and refinance application volumes were down, with purchase activity specifically 13% below last year’s level,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Government purchase volume was down less, helped by growth in VA applications. The market is relying on first-time homebuyer demand, and many first-time buyers do use government lending programs.”
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