“Mortgage rates increased for the first time in four weeks. The uptick in rates led to a decline in mortgage applications heading into Memorial Day weekend,” said Joel Kan, vice president and deputy chief economist of MBA.
Both purchase and refinance applications fell, pushing overall activity to its lowest level since early March.
The refinance index plunged 14% from the previous week, while the purchase index dipped by 1%. This decline in purchase applications is partially due to the limited supply of existing homes for sale and the challenges buyers face finding listings within their budget that meet their needs, according to Kan.
“Both purchase and refinance applications fell, pushing overall activity to the lowest level since early March,” he explained. “Borrowers remain sensitive to small increases in rates, impacting the refinance market and keeping purchase applications below last year’s levels. There continue to be limited levels of existing homes for sale, and many buyers are struggling to find listings in their price range that meet their needs.”
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