Mortgage refis down 50% versus year ago
Average interest rate for 30-year fixed-rate mortgages increased to 4.5% from 4.27% the prior week.
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A jump in mortgage rates had a big impact on the demand for mortgage applications as well as the refinancing market.
Requests for mortgage applications fell 8.1% from a week ago, according to the weekly survey from the Mortgage Banker's Association.
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The Refinance Index decreased 14% percent from the previous week and was 54% percent lower than the same week one year ago.
"With mortgage rates now at 4.5%, compared to rates at or below 3% not that long ago, it is no surprise that refinance volume has dropped by more than 50 percent compared to this time last year.," said Mike Fratantoni, MBA’s senior vice president and chief economist. "MBA’s new March forecast expects mortgage rates to continue to trend higher through the course of 2022."
FILE - A home sits for sale in Geneva, Illinois. REUTERS/Jeff Haynes (REUTERS/Jeff Haynes / Reuters Photos)
The average interest rate for 30-year fixed-rate mortgages increased to 4.5% from 4.27% the prior week.
The Purchase Index decreased 2% from one week earlier.
"Purchase application volume was down slightly for the week, with a larger drop in FHA and VA purchase volume, and a small decline in conventional purchase loans," said Fratantoni. "First-time homebuyers, who rely on these government programs, are increasingly challenged by both the rapid increase in home prices and higher mortgage rates."
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The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.