Interest rates took a tiny step backward last week, but the rise over the past month was enough to deter borrowing. Total mortgage application volume fell 7.6 percent from one week earlier on a seasonally adjusted basis for the week ending May 29, according to the Mortgage Bankers Association. The numbers also include an adjustment to account for the Memorial Day holiday.
Interest-sensitive refinances were hardest hit, falling 12 percent week-to-week to the lowest level in over a year. Refinance volume is now lower than it was a year ago, down just over 1 percent. It had been as much as 8 percent higher annually just the previous week.