Loan Demand Falls As Rates Reach 7-Month Highs

March 20, 2013

For the second consecutive week, mortgage applications fell as interest rates climbed to seven-month highs, the Mortgage Bankers Association reports in its weekly survey. 

Overall mortgage application activity dropped 7.1 percent in the week ending March 15. Refinancings, which make up the biggest bulk of that activity, dropped 8 percent last week. Applications for home purchases, viewed as a leading indicator of future home sales, dropped 3.9 percent. 

Meanwhile, 30-year fixed-rate mortgages averaged 3.82 percent during the week, the highest level since last August, the MBA reports. 

Source: “U.S. Mortgage Applications Fell Again Last Week, Rates Up,” Reuters (March 20, 2013)

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