Mortgage rates increase - mortgage applications decrease
It should come as no surprise that with an increase in home mortgage rates, the demand for mortgages would go down. That's exactly what has happened.
The Mortgage Bankers Association reports that both the purchase and the home refinance loan applications fell for the week ending April 9th, with interest rates rising slightly in that same period being blamed for the lessened activity.
The Mortgage Bankers Association states that "The average contract interest rate for 30-year fixed-rate mortgages increased to 5.77 percent from 5.75 percent from one week earlier, with points increasing to 1.33 from 1.27 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans."
The full text of the press release is here.