As expected, the recent spike in mortgage rates is taking a bite out of refinancing demand. Average rates for 30-year fixed mortgages jumped to 5.25 percent for the week ending May 29, from 4.81 percent in the previous week, according to the Mortgage Bankers Association.
As a result (from the MBA):
The Refinance Index decreased 24.1 percent to 2953.6 from 3890.4 the previous week and the seasonally adjusted Purchase Index increased 4.3 percent to 267.7 from 256.6 one week earlier. …The refinance share of mortgage activity decreased to 62.4 percent of total applications from 69.3 percent the previous week.