Mortgage applications decreased 3.4 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending May 26, 2017.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.17 percent, with points decreasing to 0.32 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
Refinance activity will not increase significantly unless rates fall sharply.
Even with the increase in mortgage rates late last year, purchase activity is still up 7% year-over-year.