U.S. Mortgage Applications Declined 2.1 Percent Amid Rising Interest Rates

Nathan Andrada – Fourth Estate Cooperative Contributor

Washington, DC, United States (4E) – The volume of mortgage applications fell 2.1 percent on a seasonally adjusted basis due to higher interest rates from the previous week, according to the Mortgage Bankers Association (MBA) report released Wednesday.

The average number of mortgage applications fell in three of the past four weeks, the MBA said, as interest rates inched up. That trend is a reversal from the start of the year, when application volume saw a modest growth due to lower interest rates.

The report showed that the market composite fell 1 percent on an unadjusted basis from the previous week. The refinance index declined 3 percent, while the seasonally adjusted purchase index was down 1 percent.

The 30-year fixed-rate mortgages with conforming loans saw the average rate rise to 4.52 percent from 4.47 percent in the earlier week. The 30-year fixed-rate mortgages with jumbo-loan balances saw rates climb to 4.41 percent from 4.37 percent.

The Federal Housing Administration-backed 30-year fixed-rate mortgages saw the average rate increase to 4.18 percent from 4.13 percent in the previous week.

Rates for 15-year fixed-rate mortgages jumped to 3.53 percent from 3.52 percent. The 5/1 ARM average increased to 3.18 percent from 3.09 percent.

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