The Real Deal Miami

Refinance apps fall sharply as mortgage rates continue to rise

December 22, 2010 11:10AM

Mortgage rates rose once again last week, driving mortgage loan application volume down, particularly in the refinance sector of the market, according to the latest data from the Mortgage Bankers Association. For the week that ended Dec. 17, refinance applications declined 24.6 percent week-over-week — their sixth weekly decline in a row — to their lowest volume since April. Purchase applications, meanwhile, declined by 2.5 percent from the previous week. The 30-year fixed-rate mortgage rate rose to 4.85 percent from 4.84 percent one week earlier, while the 15-year version rose to 4.22 percent from 4.21 percent a week ago. “Refinance application volume dropped sharply this week as mortgage rates held near six month highs,” said Michael Fratantoni, MBA’s vice president of research and economics. TRD