Mortgage applications decreased in the United States as mortgage rates move higher, according to a report from U.S. Mortgage Bankers Association (MBA) on Wednesday.
For the week ending Feb. 14, MBA’s market composite index, a measure of mortgage loan application volume, decreased 6.4 percent from the previous week.
Besides, the refinance index, which measures the activity to replace higher rate mortgages with lower rate mortgages, decreased 8 percent from the previous week, according to MBA.
Kan said the 30-year fixed mortgage increased five basis points to 3.77 percent as a result, causing refinance applications to fall.
MBA’s purchase index before seasonal adjustment rose 2 percent from the previous week. After removing the influences of predictable seasonal patterns, the seasonally adjusted purchase index decreased 3 percent from the previous week, according to MBA.
“Purchase applications fell 3 percent last week, as there continues to be some pullback after a strong January. Activity was still 10 percent higher than a year ago, but too few options — especially at the lower portion of the market — are slowing some would-be buyers,” Kan added. Enditem