The Mortgage Bankers Association (MBA) announced on Wednesday the
mortgage application volume in the U.S. increased 1.4 percent in the week ended
January, following a 5.6 percent fall the week before.
According to the MBA’s data, last week’s gain reflected a 2.2 percent increase
in applications to purchase a home, which was partially offset by a 0.1 percent
drop in refinance applications.
Meanwhile, the average fixed 30-year mortgage rate jumped from 3.33
percent to 3.52 percent, its highest level since the week ended March 21, 2020
(3.82 percent).
Commenting on the survey's results, Joel Kan, MBA Associate Vice President
of Economic and Industry Forecasting, said that a climb in mortgage rates was due
to a significant rise in U.S. Treasury yields, which was bolstered by the Fed’s signals of further policy tightening.