Home loan demand fell 14 percent last week, as higher interest rates sent refinancing down 17 percent. This was the biggest drop of the year, according to the Mortgage Bankers Association weekly survey.
Applications for mortgages to purchase homes fell 5 percent last week compared to the previous week on an adjusted basis. On an unadjusted basis, purchase applications decreased 8.2 percent compared with the previous week and were 11.3 percent lower than they were the same week a year ago.
Purchase applications had been on the rise for the previous three weeks, but “rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed’s QE2 program. Mortgage applications … dropped in response,” said Michael Fratantoni, MBA’s vice president of research and economics.
Here are the average rates:
▪ 30-year fixed-rate mortgages increased to 4.46 percent from 4.28 percent.
▪ 15-year fixed-rate mortgages increased to 3.87 percent from 3.64 percent.
Source: Mortgage Bankers Association (11/17/2010)