(Mortgage Bankers Association) Applications for mortgages in the US declined by 13.1% last week to hit the lowest since December 2019 as higher rates drove away home buyers.
The decline happens even as applications to refinance the mortgages fell 15% in the week to remain 56% below last year.
MBA’s associate vice president of economic and industry forecasting, Joel Kan, says the higher rates have shut off refinances, with the activity declining in six out of the first seven weeks of the year.
On average, the contract interest rate on a 30-year fixed rate mortgage with conforming loan balances of $647,200 and below rose to 4.06% from 4.05%.
The higher mortgage rates and low inventory for houses have pushed housing costs up, with applications for a home purchase down by 10% in the week to maintain levels 6% below last year.
At $450,200, the average purchase loan size during the week was close to the record high of 453,000 reached in the week that concluded February 11.
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