Refinance applications have plummeted to their lowest level in two years as rates continue trending upward.
Data from the Mortgage Bankers Association (MBA) has indicated that mortgage applications continue to decrease, falling 3.7% from last week. Refinancing has been particularly hard hit. Though rates last week were little changed, MBA vice president of research and economics Mike Fratantoni said they remained roughly 1% higher than three months ago, stymying refinancing activity.
"Refinance application volume continues to decline, with the refinance index now more than 55% lower than its recent peak, reaching the lowest level in over two years," he said.
While refinance applications fell, the refinance share of mortgage activity remained unchanged at 63%. And though applications for home purchases fell for the fourth time in five weeks, Fratantoni said purchase volume remained 5% higher than the same time last year.