4.6 percent drop in mortgage applications due to rate rise

According to the trade group Mortgage Bankers Association’s, mortgage applications have fallen by 4.6 percent for the week ending May 23, this is all due to the recent rate rise. Volume has also declined in the refinance market as well by 8.9 percent, with this added to the figures, the total volume is even lower.

According to Forbes, total refinance applications accounted for 46.1 percent of total applications for the week ending May 23, this is compared to 48.2 percent for the week before. However there is a little hope, as the purchase volume rose by 0.1 percent, ok it’s not much but it is something.

The average interest rate now for a standard 30-year fixed-rate mortgage is now set at 5.96 percent; this is compared to 5.90 percent just a week earlier. The most popular mortgage is a 15-year fixed-rate which is what people go for when they what to refinance their home. The average rate is 5.49 percent compared to 5.42 for the week before.