The share of refinance applications accounted for only 38 percent of all loan activity last week, sinking to the lowest level in 10 years, down 2 percent for the week, and about 13 percent YOY.
Tight lending and rising interest rates have proved discouraging for borrowers looking to refinance. Instead, borrowers looking to take cash out of their homes are seeking home equity loans. Fannie Mae's chief economist Doug Duncan explains that buyer sentiment has been temperamental, despite the spring housing season and a strong economy, CNBC's Diana Olick reports. Olick concludes saying it's most likely buyers are trying to wait out current competition and price levels.
Total mortgage application volume fell 1.9 percent, seasonally adjusted, from the previous week, according to the Mortgage Bankers Association. Volume was 5.5 percent lower than the same week one year ago. Potential buyers, who are less sensitive to weekly rate moves, are either not enticed by what they're finding on the market this spring, or, more likely, they can't afford it. Mortgage applications to purchase a home fell 2 percent for the week and were 0.5 percent lower than a year ago.
