The Mortgage Bankers Association released a survey this week announcing that applications for home loans decreased 16% last week. The primary cause was the increase in interest rates. Rates for 30 & 15 year fixed and 5 & 1 year ARM loans all increased. Rates for 30 year fixed loans rose above 5%.

What This Means to You, Dear Homeowner

Not a lot, unless you are looking to refinance. The drop in home loan applications was primarily due to a decrease in refinancing activity. In fact, as reported earlier this week, home loan applications for home purchases actually increased in May.

From a historical point-of-view, rates are incredibly cheap. So, if you are a distressed homeowner looking to sell, don’t worry about this statistic. If you are looking to buy, rates are still low but inching up. So, if all other factors are equal, you may want to buy sooner than later.