Mortgage applications were mixed again this week. According to the Mortgage Bankers Association (MBA), the Refinance Index rose a modest 4.5% to 4794.4 for the week ending May 15, while the Purchase Index fell 4.4% to 254.

The modest response resulted from a decline in mortgage rates with the MBA reporting the 30-year fixed contract rate fell seven basis points to 4.69%.

As a percent of total applications, refinancing share increased to 73.6% from 71.9%. ARM share was slightly higher at 2.4% versus 2.3% previously.

So far in May, the Refinance Index is averaging 21% below April's average. Current estimates on speeds in June, which will be reported in July, expect speeds to increase a modest 10% from May's projection. However, this could be reduced if refinancing response remains muted.

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