Weekly mortgage applications drop after an uptick in rates

Higher mortgage rates whittled down demand for applications in the previous week.

Applications fell 11.4% from seven days sooner, as per the Mortgage Bankers Association’s most recent survey.

The Refinance Index diminished 11% from the earlier week.

The average agreement interest rate for 30-year fixed-rate mortgages expanded to 3.08% from 2.98%.

“Mortgage rates have increased in six of the last eight weeks, with the benchmark 30-year fixed rate last week climbing above 3 percent to its highest level since September 2020,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “As a result of these higher rates, overall refinance activity fell 11 percent to its lowest level since December 2020, but remained 50 percent higher than a year ago.”

Texas considered a to be drop-in activity as serious winter weather influenced numerous households and lenders. Mortgage activity fell over 40% in the state.

The seasonally changed Purchase Index diminished 12% from one week sooner.

“The housing market in most of the country remains strong, with activity last week 7 percent higher than a year ago,” added Kan.

The survey covers more than 75% of all U.S. retail residential mortgage applications and has been directed weekly since 1990.

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