Industry News

Real estate refinancings sink

Higher interest rates dampen loan demand

The number of refinance applications continued its steady decline, dropping by 6.7 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association's weekly survey. Overall loan applications decreased by 3.3 percent on a seasonally adjusted basis. The MBA seasonally adjusted purchase index decreased by 1 percent to 449.8 from 454.2 the previous week. The seasonally adjusted refinance index decreased to 1,694.9 from 1,816.9 one week earlier. The refinance share of mortgage activity decreased to 36.2 percent of total applications from 37.4 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 34.6 percent of total applications from 35.2 percent one week earlier. The average contract interest rate for 30-year fixed-rate mortgages increased to 6.26 percent from 6.21 percent one week earlier. Points including the origination fee decreased to 1.35 from 1.39 the previous week for 80 percent loan-to-value ratio loans....