Purchase apps rise as interest rates hit highest level since April 2011

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Applications for purchase loans increased a seasonally adjusted 2 percent for the week ending Aug. 28 compared to a week earlier and were up 6 percent on an annual basis, according to the latest Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications survey.

During the same period, refinance applications dropped 5 percent, hitting a level that was 64.2 percent below a peak they reached in May of this year. And their share of total applications slid from 61 to 60 percent, the lowest share recorded since April 2011.

The drop in mortgage applications came as interest rates climbed to their highest level since April 2011, with the average rate for a 30-year fixed-rate mortgage with a balance of $417,000 or less rising to 4.8 percent, up from 4.68 percent a week earlier.

Source: MBA