Rising Interest Rates Subdues Mortgage Applications And Refinancing

Amid rising interest rates, purchase applications for home mortgages fell by a seasonally adjusted 3.0 percent in the January 26 week. Refinancing applications also declined by 3.0 percent from the previous week, taking the refinancing share of mortgage activity down 1.6 percentage points to 47.8 percent, the lowest share since August 2017. The average interest rate on 30-year fixed rate conforming mortgages ($453,100 or less) increased by 5 basis points to 4.41 percent, the highest level since March 2017. On a positive note for the housing market, the year-on-year gain in purchase applications widened by 3 percentage points to 10 percent.