30-year fixed-rate mortgage saw biggest weekly jump since March 2020
Rate for a 30-year fixed-rate mortgage increased to 4.05% from 3.83% in the past week
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Mortgage rates continue to climb, putting the brakes on interest in getting mortgages.
Demand for mortgage loan applications fell 5.4% from the previous week, according to the weekly survey from the Mortgage Banker's Association.
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"The 30-year fixed rate saw the largest single-week increase since March 2020 and was above the 4 percent mark for the first time since 2019', said Joel Kan, MBA's associate vice president of economic and industry forecasting. "Consistent with this period of higher mortgage rates, refinance applications fell 9 percent last week and stood at around half of last year’s pace. The refinance share of applications was also at its lowest level since July 2019."
The Purchase Index slipped 1% in the past week as mortgage rates increased to 4.05% from 3.83%.
"Purchase applications saw a modest decline over the week, with government purchase applications accounting for most of the decrease," added Kan. "Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,000," he said.
The housing sector has seen rising loan balances as inventory for entry-level buyers remains tight.
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The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.