Mortgage Refinances Hit 18-Year Low

​This past week, mortgage applications and refinancing activity continued to decrease, with refinances falling to 18-year lows. Jobless claims also rose to a seven-week high for the week ended May 19th, with the four-week average reversing course to an increase.

• According to the Mortgage Bankers Association (MBA), mortgage applications continued to decrease, falling 2.6% for the week ended May 18th. The Refinance Index fell 4% to the lowest level since December 2000. MBA also reported that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $453,100 or less increased from 4.77% to 4.86%, or the highest rate since April 2011.
  

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• Jobless claims increased unexpectedly to a seven-week high for the week ended May 19th. Initial claims for state unemployment benefits rose 11,000 to a seasonally adjusted 234,000. The prior week’s claims were revised from 222,000 to 223,000. Economists polled by Reuters expected claims for the week ended May 19th to come in at 220,000. The four-week moving average reversed course from a record low in the prior week to increase 6,250 to 219,750.