“The ongoing affordability hit of higher home prices and fast-rising mortgage rates led to a slowdown in purchase applications in May. While the median principal and interest payment only increased $8 from April, a typical borrower is paying $514 more through the first five months of 2022 – a jump of 37.1%,. Inflationary pressures and rates above 5 percent are both headwinds for the housing market in the coming months." --Edward Seiler, MBA Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America.

The company’s Q4 Mortgage QC Industry Trends Report found the overall critical defect increased 0.08% to 1.95%, a change of 4% from the prior quarter, as lenders transitioned to a purchase-heavy lending environment.

After falling for more than a month, mortgage applications rose for the second week in a row, even as interest rates nearly reached 6 percent—the highest level since 2008, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending June 17.