Rising mortgage rates appeared to put a crimp in mortgage and refinancing activity in the most recent week, according to data from Mortgage Bankers Association released on Wednesday.
Mortgage applications dropped 1.8% from the previous week.
Mortgage rates, meanwhile, averaged 5.02%, up from 4.89% the previous week. The average on a 15-year fixed-rate mortgage was 4.44%, up from 4.32%. Rates for 1-year ARMs averaged 6.71%, up from 6.56%.
This drop in mortgage activity comes on the heels of a 16.4% week-to-week gain for the week ended Oct. 2.
Applications to refinance an existing mortgage fell 0.1% compared to the week ended Oct. 9, according to the MBA’s weekly survey. New-home applications fell 5% seasonally adjusted.
Still, much mortgage activity is taking place on the refi side: Refinance applications accounted for 67.4% of all activity last week, up from 66.3% the week before. Adjustable-rate mortgages accounted for 6.2% of all applications, up from 6.1%.
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