According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from the week before. Rates were up across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. It was the fifth consecutive weekly increase and pushed rates to their highest level since March 2020. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says rising rates have lowered refinance demand. “Unsurprisingly, borrower demand for refinances subsided, with applications falling for the fourth straight week,” Kan said. “After almost two years of lower rates, there are not many borrowers left who have an incentive to refinance.” Purchase activity also fell week over week, though most of the decline was seen among government loan applications. Conventional application demand fell less than one percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
