June 18 (UPI) -- The Mortgage Bankers Association reported that May mortgage demand was down 4.5% year-over-year, despite lower interest rates. Refinance demand was also lower in May.
"Economic uncertainty, rising mortgage rates and increasing competition from growing existing-home sales inventory likely dampened overall demand for new-home purchases in May," association vice president and chief deputy economist Joel Kan said in a statement.
"Applications to purchase newly built homes fell to their slowest pace in three months as buyers held off on their purchase decisions," he added. Mortgage applications were down 9% compared with April.
According to the mortgage bankers' group, new single-family home sales dropped 12.1% from April's sales level. The association estimated that 631,000 new homes sold in May, compared with 718,000 in April.
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