Number of mortgage applicants in U.S. fall after lending rates rise

The Mortgage Bankers Association (MBA) reported a 1.2% drop in mortgage applications last week after the rebound in mortgage interest rates.

The number of applicants for refinancing fell 4% last week and 83% compared to the same period last year.

The number of applicants for home equity loans rose just 0.2% last week and fell 29% compared to the same period last year.

The average interest rate on 30-year fixed mortgages for loans up to $647,200 rebounded to 6.01% from 5.94% the week before.

The interest rate on loans has risen above 6% for the first time since 2008 and has more than doubled in the last year. It reached its highest level since the end of the financial crisis and the Great Recession.

The average mortgage rate has risen steadily since the beginning of 2022, given the yield on 10-year U.S. Treasury bonds, which is the benchmark for mortgage rates. The U.S. Federal Reserve (Fed) has accelerated its rate hikes to contain inflation.

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