US Mortgage Application Volumes Drop 5%: Key Insights

Mortgage application volumes in the US fell by 5.1% from the previous week for the period ending May 16th, the sharpest drop in one month, according to data compiled by the Mortgage Bankers Association. 

The pullback was aligned with the fresh increase in benchmark mortgage rates, which approached the 7% threshold, as lingering concerns of inflation and unsustainable debt lifted yields and long-dated Treasury securities. 

Applications for a mortgage to buy a new home fell by 5%. 

Applications for a contract to refinance a mortgage, which are more sensitive to short term changes in interest rates, also fell by 5%.