An increase in mortgage rates last week caused mortgage application volume to drop 11.9 compared with the previous week.
Applications to refinance a home loan also plunged 17% last week, according to the Mortgage Bankers Association.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.02 percent from 3.92 percent, with points increasing to 0.38 from 0.35 (including the origination fee) for loans with a 20% down payment. That rate was 109 basis points higher the same week last year.
“Interest rates continue to be volatile, with Brexit votes and ongoing trade negotiations swinging rates higher or lower on any given day.” said Mike Fratantoni, the association’s senior vice president and chief economist. “Borrowers with larger loans are the most sensitive to rate changes, and with rates climbing higher last week, the average size of a refinance loan application fell to its lowest level this year.”
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