For the second consecutive week, mortgage demand decreases, with the focus being on Friday's jobs report.

• The interest rate for 30-year fixed-rate mortgages with conforming loan balances rose from 7.05% to 7.07%.
• The number of applications to refinance a home loan decreased by 7% compared to the previous week, but increased by 5% compared to the same time last year.
• The number of mortgage applications for purchasing a home decreased by 4% in a week and was 16% lower compared to the same time last year.

Since early May, the highest level of mortgage interest rates was reached last week, which resulted in a decrease in mortgage demand for the second consecutive week.

The Mortgage Bankers Association's seasonally adjusted index showed a 5.2% decrease in total mortgage application volume last week compared to the previous week, after an additional adjustment was made to account for the Memorial Day holiday.

The interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 7.07% from 7.05%, with points increasing to 0.65 from 0.63 (including the origination fee) for loans with a 20% down payment.

Last week, mortgage rates increased slightly, with the 30-year conforming rate reaching 7.07 percent, the highest level since early May, despite indications of slower economic growth, according to Mike Fratantoni, MBA's SVP and chief economist.

The number of applications to refinance a home loan decreased by 7% compared to the previous week, but was 5% higher than the same week a year ago. Although mortgage rates are currently 0.25% higher than they were a year ago, some borrowers may still be refinancing to access their home equity.

Home purchases are becoming increasingly difficult for buyers due to the 4% decline in mortgage applications for the week and a 16% decrease compared to the same week last year. In addition to higher interest rates, home prices are still rising and competition is intense, particularly in the lower-end market.

Government purchase volume decreased slightly, but was offset by an increase in VA applications. The market is heavily dependent on first-time homebuyer demand, and many first-time buyers utilize government lending programs, according to Fratantoni.

Last week, mortgage rates experienced a sudden decrease on Friday, and this trend persisted throughout the week. Meanwhile, an unexpectedly low number of job openings were reported in April based on an employment report released on Tuesday.

According to Matthew Graham of Mortgage News Daily, lower job openings may indicate lower interest rates, but the government's monthly employment report, which will be released on Friday, will have a greater impact on future interest rates.

Graham added that this could indicate some anticipation for the upcoming week's data to be similarly downbeat. However, there is a risk that the data may exceed expectations and cause a volatile bounce back toward higher rates.