Mortgage applications fell for the second straight week as rising interest rates choked refinancing, according to the Mortgage Bankers Association.
The Market Composite Index, which tracks mortgage application volume, decreased 4.6% on a seasonally adjusted basis for the week ending Aug. 16 from the previous week, according to a report released Tuesday by MBA. On an unadjusted basis, the index decreased by 5%.
The Refinance Index dropped 8% from the previous week, and has spiraled 62.1% from the peak reached in May. Refinancing’s share of total mortgage activity dropped one percentage point, from 62% to 61%.
Meanwhile, the average rate for a 30-year fixed-rate mortgage jumped to 4.68%, up from 4.56%, while the average rate for a 15-year fixed-rate mortgage rose from 3.6% to 3.71%.