Industry data released on Wednesday showed that mortgage application volume tumbled over 14 percent last week, as refinance activity plunged nearly 19 percent.
The Mortgage Bankers Association revealed that its market index of mortgage application volume fell 14.2 percent on a seasonally adjusted basis for the week of May 22nd. The Market Composite Index was 786.0 compared to 915.9 in the previous week.
On an unadjusted basis, the index fell 13.8 percent, and it was up 28.5 percent on a year-over-year basis.
The Refinance Index fell 18.9 percent from the previous week, when it had ticked up 4.5 percent. The refinance share of mortgage activity fell below 70 percent to 69.3 percent from 73.6 percent of total applications in the previous week.
For the week of May 22nd, the index ticked down to 3890.4 from 4794.4 in the previous week.
However, cushioning the effect of the refinancing fall was a slight increase in the seasonally adjusted Purchase Index, which increased 1.0 percent to 256.6 from 254.0 last week.
The four week moving average is up 0.5 percent for the Purchase Index, while this average is down 6.2 percent for the Refinance Index.
The adjustable rate mortgage share of activity increased to 2.6 percent from the previous week, when it made up 2.4 percent of total applications.
30-year fixed-rate mortgages jumped to 4.81 percent from 4.69 percent last week. The rates for 15-year fixed-rate remained unchanged at 4.44 percent. One-year ARMs also rose, climbing to 6.55 percent from 6.38 percent in the previous week.