Mortgage application volume fell by 4.1% last week, according to the Mortgage Bankers Association, reflecting a broader trend as both homebuyers and current homeowners retreat from the market. The average interest rate for 30-year fixed-rate mortgages rose to 6.97%, with some reports indicating rates have exceeded 7%.
Joel Kan, MBA's vice president, noted that concerns over high inflation and energy prices are driving bond yields and mortgage rates higher. Refinance applications plummeted by 9% week-over-week and are down 65% compared to the same time last year, as current rates diminish refinancing benefits.
Purchase mortgage applications also declined by 1% and are 19% lower than a year ago, with high home prices continuing to deter potential buyers. As of Tuesday, the average mortgage rate reached 7.22%, marking a significant increase from the previous year.
Matthew Graham from Mortgage News Daily highlighted that the recent volatility in rates is linked to economic data and oil prices, which may influence Federal Reserve policy decisions