Refis losing market share as interest rates rise

April 13, 2011 01:48PM

U.S. mortgage activity declined by 6.7 percent last week as interest rates continued to inch upward, according to data from the Mortgage Bankers Association through April 8. Both refinancing applications and applications for mortgages to assist with residential purchases declined in volume on a week-over-week basis, by 7.7 percent and 4.7 percent, respectively. Refinancing applications now account for just 60.3 percent of all U.S. mortgage activity, their lowest share since last May. The 30-year fixed-rate mortgage’s average contract interest rate, meanwhile, rose to 4.98 percent from 4.93 percent one week ago — its fourth straight weekly increase. The 15-year mortgage saw the average interest rate rise to 4.17 percent from 4.14 percent a week earlier. TRD

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