Industry NewsMortgage

Rising rates cut into home loan apps

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Home loan application volume sank 14.2 percent last week on a seasonally adjusted basis from one week earlier as interest rates climbed considerably, the Mortgage Bankers Association reported today. According to the trade group, the decrease was led by a 20.2 percent drop in the index that tracks refinancings, followed by a 6.4 percent decline in purchase loan applications. Interest rates on long-term loans climbed an average of 32 basis points last week, with the average rate on 30-year fixed-rate mortgages jumping from 5.74 percent to 6.04 percent and the average on 15-year fixed loans rising from 5.27 percent to 5.6 percent. The points that borrowers paid to attain these rates dipped from 1.05 to 1.04 on the 30-year loans and fell from 1.19 to 1.06 on the 15-year loans. On one-year adjustable-rate mortgages (ARMs), the average interest rate decreased to 6.93 percent from 7.02 percent, but average points paid gained from 1.28 to 1.38. In MBA's survey, the refinance share o...