Mortgage rates move up for second straight week
Consequentially, home loan applications fell 7.7% week over week, according to the Mortgage Bankers Association. Refinance applications were down 13%, and purchase activity declined 5% compared to the prior week.
“Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time,” said MBA deputy chief economist Joel Kan. “Mortgage applications decreased for the second time in three weeks because of these higher rates. Refinance borrowers, both rate/term and cash-out, remain on the sidelines as current rates provide little financial incentive to act.”
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