Home Refinancing Plunges on Higher Rates

Washington, DC, June 5, 2013 --  Mortgage application volume fell 11.5% last week as mortgage rates rose, according to the Mortgage Bankers Association.

Fixed 30-year mortgage rates climbed 17 basis points to average 4.07% in the week ended May 31.

Rates have risen nearly half a percentage point in the last month.

Demand for refinancing slumped 15.0%. The refinance share of total mortgage activity fell to its lowest level since July 2011 at 68% of applications from 71% the week before.

Applications for home purchases fell only 1.6%.