Mortgage rates are on the rise, prompting fewer home owners to refinance their mortgages, but the increase doesn’t appear to deter home buyers yet.
The lower refinance demand caused overall mortgage applications to drop 2.6 percent last week, the Mortgage Bankers Association reported Wednesday. The MBA’s survey covers about 75 percent of the residential mortgage market.
Meanwhile, loan applications for home purchases — viewed as an indicator of future home sales — inched up slightly by 0.5 percent for the week ending July 12.
Mortgage rates were at a two-year high last week, with the 30-year fixed-rate’s averaging 4.68 percent — the highest level since July 2011, the MBA reports.
Source: “Higher mortgage rates push refinancing applications to 2-year low,” Reuters (July 17, 2013)