Mortgage applications fall as rates begin to rise

Blog Post Image
Real Estate

Mortgage application volume declined by 1.1% for the week ending Sept. 24, after a rebound in the previous week, according to the Mortgage Bankers Association (MBA).

Pushing the decline was the purchase index, which dipped by 1.2% from the previous week. Meanwhile, the refi activity decreased by 0.9% from the prior week, the trade group said.

On an unadjusted basis, MBA’s index decreased by 1.3% compared to the previous week, showed the survey published today. The purchase index shrank 1.9%, and the refi index contracted 0.9%.

Joel Kan, MBA’s associate vice president of economic and industry forecasting, said that Treasury yields increased due to optimism about the strengthening economy. “Mortgage rates in response rose across all loan types, with the benchmark 30-year fixed rate reaching its highest level since early July 2021,” he said.

Kan added that the increase in rates occurred “mostly later in the week,” but it was enough to lead to a decrease in both purchase and refinance mortgage applications.

Click here for more information: