MBA: Rising Interest Rates Soften Loan Demand

March 12, 2014

Mortgage applications fell 2.1 percent on a seasonally adjusted basis compared to the prior week as interest rates were on the rise again, according to the Mortgage Bankers Association mortgage application index.

Mortgage applications have posted drops in three of the past four weeks. Many economists point to higher interest rates as softening demand, particularly among refinancers.

Applications for refinancings dropped 3 percent last week, while applications for home purchases – viewed as a leading guage of future home sales – fell 1 percent, the MBA reports.

The 30-year, fixed-rate mortgage averaged 4.52 percent last week, up from 4.47 percent the previous week, the MBA reports.

Source: “U.S. Mortgage Application Volume Fell 2.1% Last Week, MBA Says,” The Wall Street Journal (March 12, 2014)

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