Mortgage refinance applications descended by 43% last week versus the same week in 2021, according to the Mortgage Bankers Association’s seasonally adjusted index.
- The latest data is the first year-on-year drop since March 8, 2019. Mortgage rates plunged in 2020 on COVID-19 fears, driving a spike in refinance demand.
- Applications last week fell 5% from the previous week. The refinance share of mortgage activity dropped to 64.5% of the total versus 67.5% the previous week.
- The average contract interest rate for 30-year fixed-rate mortgages rose to 3.26% from 3.23% for conforming loan balances.
- Points for loans with a 20% down payment decreased to 0.43 from 0.48, including the origination fee.
- The latest adjustments brought year-to-date rates up 40 basis points.
- Analysts say signs of an economic recovery, improving job data, and vaccine distribution are pushing rates higher.
- Mortgage applications to purchase a home rose 7% for the week, and 2% from the same week the previous year.