Following a 15 percent surge in mortgage applications, demand for home loans fell for the week ending March 8, the Mortgage Bankers Association (MBA) reports in its weekly mortgage market surveyed. Mortgage rates inched up this week, decreasing demand for home loans, MBA says.
The organization’s mortgage market index, which measures loan demand for refinancing and home purchases, dropped 4.7 percent for the week. Broken out, refinancing application demand fell 5.2 percent while applications for home loans — viewed as a leading indicator of future home sales — dropped 2.5 percent.
Meanwhile, the 30-year fixed-rate mortgage reached its highest average in more than six months, averaging 3.81 percent. Recent data that revealed job growth was stronger in February than expected caused mortgage rates to inch higher, according to MBA.
Source: “Mortgage Applications Decreased Last Week as Rates Spiked,” Reuters 3/13/13