NEW YORK (Reuters) — U.S. mortgage applications fell last week,
reflecting a plunge in demand for home refinancing loans as interest
rates surged to their highest levels since late January, data from an
industry group showed on Wednesday.

The Mortgage Bankers
Association said its seasonally adjusted index of mortgage
applications, which includes both purchase and refinance loans, for the
week ended May 29 decreased 16.2% to 658.7.

Tom Marano, chief
executive of mortgage operations at GMAC, said in an exclusive
interview with Reuters on Tuesday that home loan volume at GMAC is
about 75% lower now than when mortgage rates hit record lows several
months ago.

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