Surprise uptick in US mortgage applications amid record-high rates
![](https://www.propertyloans.biz/wp-content/uploads/2022/05/surprise-uptick-in-us-mortgage-applications-amid-record-high-rates.jpg)
Of total applications, the refi share of mortgage activity went down from 33.9% to 32.4% as of May 6. On the other hand, the adjustable-rate mortgage (ARM) share of activity grew to 10.8% of total applications.
“More borrowers continue to utilize ARMs to combat higher rates. The share of ARMs increased to 11% of overall loans and to 19% by dollar volume,” added Kan. “The rapid rise in mortgage rates continues to hit the refinance market, with activity 70% below a year ago. Most homeowners refinanced to lower rates in the past two years.”
Read next: Home purchase sentiment tumbles across the board
According to Fannie Mae’s latest report, consumers’ sentiment about getting a mortgage decreased significantly in April. Roughly 73% of respondents said they expect mortgage rates to continue to rise over the year. Additionally, the share of consumers who believe it’s a bad time to buy a home increased three percentage points to a record high of 76%.
Comments are closed.