Mortgage Purchase Applications Fall, Refinancing Increases Slightly

The housing market is losing momentum, with purchase applications for home mortgages falling 6.0 percent in the May 13 week to the lowest level since February, and the year-on-year gain, though still very high at 12 percent, continuing to narrow. Refinancing activity, however, rose 1.0 percent from the previous week, continuing to benefit from very low rates. The average 30-year mortgage for conforming loans ($417,000 or less) remained unchanged at 3.82 percent.