Total mortgage application volume was down 52.7 percent last week from a year ago, according to the Mortgage Bankers Association. Sharply rising interest rates are curtailing refinancing and those rates, along with high home prices, are curbing buyer demand.
“Mortgage rates followed Treasury yields up in response to higher-than-expected inflation and anticipation that the Federal Reserve will need to raise rates at a faster pace” said Joel Kan, a MBA economist.
Last week the average interest rate for a 30-year fixed-rate mortgage for a conforming loan increased to 5.65 percent from 5.4 percent, according to the Mortgage News Daily. This week they surged again hitting 6.28 percent yesterday, MND reported.