Mortgage Demand Falls as Rates Move Back to Over 7 Percent

Weekly mortgage demand dropped to the lowest in three months as interest rates moved up following a period of decline, signaling a declining home buyer enthusiasm in the country. The Market Composite Index, a measure of mortgage loan application volume, fell by 5.7 percent for the week ending May 24 from the previous week. This is the “lowest level since early March,” said Joel Kan, vice president and deputy chief economist at Mortgage Bankers Association (MBA), in a statement. Both refinance and purchase applications fell during this period, he noted. “Mortgage rates increased for the first time in four weeks, with the 30-year fixed rate up to 7.05 percent and all other loan types also seeing increases. The uptick in rates led to a decline in mortgage applications heading into Memorial Day weekend,” he added....