With 30-year mortgage rates rising by about a third of a percentage point, mortgage application volume dropped 5.5% in the week ended Feb. 4, according to the Mortgage Bankers Association’s weekly mortgage applications survey, released Wednesday.
The refinance index declined 7.7%, while the purchase index fell 1.4%, both seasonally adjusted.
“Mortgage rates increased last week as many incoming economic indicators continue to show stronger growth than had been anticipated,” said Michael Fratantoni, the MBA’s vice president of research and economics.
“Refinance volume continues to be low, as fewer homeowners with equity have any incentive to refinance. We are at the beginning of the spring buying season, but purchase volume remains weak on a seasonally adjusted basis,” Fratantoni added.
Refinancing accounted for 66.6% of applications, down from 69.3% the previous week.
The average interest rate for 30-year fixed-rate mortgages increased to 5.13% from 4.81%, while the 15-year fixed rate rose to 4.29% from 4.13%.
