Mortgage demand plummeted last week as homebuyers shied away from the housing market amid rising mortgage rates.
Mortgage loan application volume decreased by 10.6% last week on a seasonally adjusted basis when compared to the week before, according to a report Wednesday from the Mortgage Bankers Association.
The volume of refinances crashed by 11% during that same time, according to the group’s weekly survey.
The dropping demand comes as mortgage rates are rising again. As of Wednesday, the average rate on a 30-year fixed-rate mortgage has soared to 7.11%, according to Mortgage News Daily. That is notably up from a recent low of about 6.65% notched near the end of December.
“Mortgage applications dropped as a result with a larger decline in refinance applications,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Potential homebuyers are quite sensitive to
Read more…
