As rates continue to rise, it appears mortgage and refinancing interest is waining.
According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, mortgage loan application volume decreased 7.1 percent from one week earlier. Refinance volume decreased 13 percent from the previous week and was 53 percent lower than the same week one year ago.
The refinancing share of total mortgage activity decreased to 55.8 percent, down from 60.3 percent the previous week.
“All mortgage rates in MBA’s survey continued to climb, with the 30-year fixed rate rising for the fifth consecutive week to its highest level since March 2020. The 30-year fixed rate is now 77 basis points higher than it was a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Unsurprisingly, borrower demand for refinances subsided, with applications falling for the fourth straight week. After almost two years of lower rates, there are not many borrowers left who have an incentive to refinance. Of those who are still in the market for a refinance, these higher rates are proving much less attractive to them.”
For weekly updates on mortgage and refi average rates, be sure and check out California Listings Mortgage Minute, published every Saturday.