US Mortgage Applications Fall 12% as Interest Rates Increase

Source: CNBC

Mortgage applications in the United States declined by double digits in the past week amid higher interest rates, data from the Mortgage Bankers Association indicated. XHB is down 3.28%, while ITB is down 3.18%.

• Applications to purchase a home slipped by 12% from the past week and by 15% versus the same week the previous year.
• The latest decline reflects the first weekly drop in demand in a month since the third week in April.
• The drop comes as mortgage rates have climbed by over two percentage points year to date, bringing home prices over 20% higher than in 2021.
• The average interest rate for the 30-year fixed-rate mortgages with conforming loan balances stood at 5.49%, lower than the 5.53%. Points for loans with a 20% downpayment increased to 0.74 from 0.73.
• Applications to refinance a home loan also slipped by ten from the previous week, with refinancing demand indicating a 76% lower year on year.