Rising interest rates curbing mortgage activity

Mortgage activity declined by 2.7 percent last week as interest rates continued to rise, according to the latest weekly survey from the Mortgage Bankers Association. Refinance loan application volume was down 0.7 percent — its fifth consecutive weekly decline — while purchase applications dropped by 5 percent week-over-week. Meanwhile, the 30-year fixed-rate mortgage saw its average contract interest rate reach 4.84 percent, up from 4.66 percent one week ago. The 15-year mortgage reached an interest rate of 4.21 percent, up from 3.98 percent one week ago. “Treasury rates increased last week following news that lower tax rates could be extended for another two years, boosting growth prospects,” said Michael Fratantoni, MBA’s vice president of research and economics, who also noted that interest rates have risen by more than half a percentage point in the last month alone. TRD