Mortgage loan application volume fell 9.5% on a seasonally adjusted basis for the week ending Feb. 11, the Mortgage Bankers Association (MBA) reports in its latest applications survey. On an unadjusted basis, applications decreased 7.9% compared with the previous week.
The Refinance Index decreased 11.4% from the previous week and is the lowest Refinance Index recorded in the survey since July 2009. The seasonally adjusted Purchase Index decreased 5.9% from one week earlier. The unadjusted Purchase Index decreased 0.9% compared with the previous week and was 18.2% lower than the same week one year ago.
‘Mortgage rates remained above five percent last week, up almost a full percentage point from their October lows, and refinance volume continued to drop,’ says Michael Fratantoni, MBA's vice president of research and economics. ‘Applications for home purchases also declined on a seasonally adjusted basis. Buyers have not returned to the market, as rising rates have reduced affordability, to some extent.’
SOURCE: Mortgage Bankers Association