Activity was down in the mortgage market last week as a result of spiking interest rates, according to a report released Monday.
Rates spiked last week on better-than-expected jobs data, with the average rate for a 30-year fixed-rate mortgage hitting 4.558%, up from 4.480% the week prior.
According to LoanSifter’s U.S. Mortgage Market Index, refinances took the biggest hit last week, but conventional loans also suffered. The index ended last week at 168, a 7% decline from the previous week. Compared to last year at that time, market activity dropped by nearly a third.
Refis dropped 9% last week from the prior week, and pricing inquiries for refi transactions fell 56% from the same week in 2012, according to the study. Refinance’s share of the market was 50.4% last week, down from 51.3% the week prior.
Inquiries for conventional loans dropped 8% week-over week and 38% year-over-year. FHA loan inquiries fell 4% week-over-week, and have plummeted 30% year-over-year.