The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. dropped 2.7 per
cent in the week ended April 19, following a 3.3 per cent climb the week before. This was the first fall in total
mortgage application volume in three weeks.
According to
the MBA’s data, last week’s decline in mortgage applications reflected a 5.6 per cent plunge in mortgage refinance applications and a 1.0 per cent decrease
in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate rose
from 7.13 1 per cent to 7.24 per cent, the highest level since the week ended November
24, 2023 (7.37 per cent).
Commenting on
the latest survey results, Joel Kan, MBA’s vice
president and deputy chief economist, noted that mortgage rates continued to
move higher last week, reaching their highest levels since late 2023 and
putting a damper on applications activity. “Purchase applications declined, as
home buyers delayed their purchase decisions due to strained affordability and
low supply,” he added.