As interest rates rose last week, mortgage application volume fell 16.5%, the Mortgage Bankers Association reports in its Weekly Mortgage Applications Survey.
Last week saw a 21.6% drop in the MBA's Refinance Index – the third weekly decrease for the index, which reached its lowest level since June. The seasonally adjusted Purchase Index increased 1.1% from one week earlier and is at its highest level since the beginning of May, the MBA says.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.56% from 4.5%, with points increasing to 0.96 from 0.87 (including the origination fee) for loans with 80% loan-to-value ratios. The average contract interest rate increased for the fourth time in five weeks and is at the highest level reported since August.
SOURCE: Mortgage Bankers Association