Tags: Mortgage | Applications | Rates | home

Mortgage Applications Drop as Rates Jump

Wednesday, 21 March 2012 08:02 AM

Applications for U.S. home mortgages tumbled last week, led by a sharp drop in refinancing demand as rates jumped, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, slumped 7.4 percent in the week ended March 16.

The MBA's seasonally adjusted index of refinancing applications lost 9.3 percent, while the gauge of loan requests for home purchases was off 1.0 percent.

The refinance share of total mortgage activity fell to 73.4 percent of applications from 75.1 percent the previous week.

Fixed 30-year mortgage rates surged 13 basis points to average 4.19 percent from 4.06 percent.

"With the rate increase last week, refinances are obviously slowing," Jay Brinkmann, chief economist of the MBA said in a statement.

Brinkmann said the refinance share was at its lowest level since last July.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

© 2021 Thomson/Reuters. All rights reserved.

Wednesday, 21 March 2012 08:02 AM
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