Mortgage Applications Fall 2.3% as Purchase Demand Drops 4%

10 articles · Updated · Floor Focus · May 22

MBA data for the week ended May 15 showed total mortgage applications fell 2.3% from the prior week, with the unadjusted market index down 3%.
Purchase activity drove the decline: the seasonally adjusted purchase index dropped 4%, while the unadjusted measure fell 5% week over week.
Refinancing was nearly flat, slipping 0.1% from the previous week, but remained 35% above the same week a year earlier.
Despite the weekly pullback, homebuying demand still ran ahead of last year, with the unadjusted purchase index up 8% year over year.

Home loan applications are up 8% from last year, so why are buyers suddenly backing away now?

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