Mortgage Applications Fall 3.1% in Latest Week

June 4, 2014

Loan demand was on the decline last week, despite mortgage rates continuing to drive down borrowing costs, the Mortgage Bankers Association reported Wednesday. 

The MBA’s index measuring applications for both refinancing and home purchases dropped 3.1 percent in the week ending May 30. Broken out, applications for refinancings dropped 2.9 percent while applications for home purchases, viewed as a leading indicator of future home sales, fell 3.6 percent during the week. The purchase index is 17 percent lower than the same week a year ago. 

The MBA included an adjustment for the Memorial Day holiday.

Meanwhile, mortgage rates continued to head down last week. The 30-year fixed-rate mortgage averaged 4.26 percent last week, down five basis points from 4.31 percent the week prior. 

Source: “U.S. mortgage applications fall in latest week: MBA,” Reuters (June 4, 2014)