The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. plunged 10.6 per
cent in the week ended February 16, following a 2.3 per cent decrease the week before. This marked the sharpest weekly fall in
total mortgage application volume since the week that ended December 29, 2023 (-10.7
per cent).
According to
the MBA’s data, last week’s plunge in mortgage applications reflected an 11 per cent tumble in mortgage refinance
applications and a 10
per cent decline in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate increased
from 6.87 per cent to 7.06 per cent, the highest level since the week ended December 8, 2023 (7.07 per cent).
Commenting on
the latest survey results, Mike Fratantoni, MBA’s SVP
and chief economist, noted that mortgage rates moved back above 7 per cent
last week following news that inflation picked up in January, dimming hopes of
a near-term rate cut. “Potential homebuyers are quite sensitive to these rate
changes, as affordability is strained with both higher rates and higher home
values in this supply-constrained market,” he added.