Mortgage applications dropped for the third straight week last week as higher rates dampened borrowing.
According to the Mortgage Bankers Association’s weekly mortgage application survey, the Market Composite Index – a measure of loan application volume -- decreased 2.3% last week on a seasonally adjusted basis. On an unadjusted basis, the index dropped 13% from the previous week.
The refinance index was also down, dropping 7% last week, and the refinance share of mortgage activity dropped from 66% to 64% this week.
The average rate for 30-year fixed-rate mortgages with conforming loan balances jumped from 4.44% to 4.46% last week, according to the MBA. The average rate for FHA-backed 30-year FRMs was also up, increasing from the previous week’s 4.14% to 4.16%. the average rate for 15-year FRMs stayed steady at 3.52%.
The average interest rate for 5/1 adjustable-rate mortgages increased to 3.12% from the previous week’s 3.11%.