Mortgage refinance demand is slipping, after a frenzy of refinance activity in mid-March, when sub-3% mortgage rates caused a spike of refinancing to a 17-year record.
There were 6.3% fewer refinances in the U.S. during the week ending May 15 — the largest weekly drop in May. Refinance activity has been on a steady decline and is down 17.4% from the four-week period ending April 17, according to the latest report by the Mortgage Bankers Association.
“Refinances are actually continuing to fall off a little, and rates are close to record lows,” said Joel Kan, associate vice president of industry surveys and forecasts at the Mortgage Bankers Association.
Mortgage interest rates remain at low levels, at less than 3.3% last week for 30-year fixed-rate mortgages, according to Freddie Mac, which would normally incentivize homeowners to refinance. But lending standards have become stricter. With uncertain economic conditions, mortgage lenders are