Rapidly rising rates lead to mortgage refinance application slump

TRD MIAMI /
Aug.August 22, 2012 02:15 PM

Mortgage rates posted some of their biggest increases of the year last week and, in turn, depressed the market for mortgage refinance applications, according to data for the week ending Aug. 17 released today by the Mortgage Bankers Association. Total mortgage applications plummeted 7.4 percent thanks to a 9 percent decrease in applications for refinances, which comprised 80 percent of the market, down a single percentage point from a week earlier. Applications for loans for home purchases ticked up 0.9 percent.

It’s the third consecutive week of application declines.

Interest rates for 30-year fixed-rate mortgages with conforming balances increased one-tenth of a percentage point to 3.86 percent from 3.76 percent. Jumbo loans with similar terms jumped to 4.11 percent from 4.03 percent, while Federal Housing Administration-backed 30-year fixed-rate loans saw their rate rise 9 basis points to 3.62 percent. Finally, 15-year fixed-rate loans rose to 3.15 percent from 3.12 percent.

The MBA also noted that investors accounted for 5.7 percent of all home purchase mortgage applications in July, up from 5.5 percent in June. Second home purchasers took out 5.8 percent of loans, up two-tenths of a percentage point month-over-month. — Adam Fusfeld


Related Articles

arrow_forward_ios
Photo illustration of Ron DeSantis (Getty, iStock)

DeSantis announces $250M rental, mortgage assistance fund

DeSantis announces $250M rental, mortgage assistance fund
Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

Florida extends freeze on evictions and foreclosures to July

Florida extends freeze on evictions and foreclosures to July
Governor Ron DeSantis (Credit: Eva Marie Uzcategui/Getty Images)

Florida governor extends freeze on evictions, foreclosures

Florida governor extends freeze on evictions, foreclosures
Florida Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

SoFla prepares for flood of foreclosures and evictions after governor’s freeze

SoFla prepares for flood of foreclosures and evictions after governor’s freeze
Florida Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

Florida governor freezes evictions and foreclosures for 45 days

Florida governor freezes evictions and foreclosures for 45 days
South Florida lenders and landlords battle new coronavirus reality

South Florida lenders and landlords battle new coronavirus reality

South Florida lenders and landlords battle new coronavirus reality
From left: Edgardo Defortuna, Stephan Burke, Ron Shuffield, Ana Bozovic, Carol Cassis, and Mark Zilbert

South Florida’s residential sales shift to virtual reality as business slows

South Florida’s residential sales shift to virtual reality as business slows
Sen. Rick Scott

Sen. Rick Scott calls for nationwide moratorium on rent, mortgages and utilities

Sen. Rick Scott calls for nationwide moratorium on rent, mortgages and utilities
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...