Interest rates soared to their highest level in a year while mortgage applications fell again last week by 9 percent, the Mortgage Bankers Association reports.
For the third consecutive week, refinance applications dropped, falling 12 percent for the week ending May 24. That marked the single largest weekly drop this year for refinance applications. Refinance applications are at their lowest level since December.
Meanwhile, applications for purchases — viewed as a leading gauge of future home sales — rose 3 percent last week, the MBA reported.
The average 30-year fixed-rate mortgage rose to 3.9 percent — the highest since May 2012, the MBA reported. The average 15-year fixed-rate mortgage was also on the rise, increasing to 3.1 percent from 2.96 percent the week before.
Source: “U.S. mortgage applications down 9% last week: MBA,” The Wall Street Journal