Mortgage applications tumbled 4.1 percent for the week ending January 22 in the Mortgage Bankers Association’s weekly survey released Wednesday.
The Refinance Index decreased 5 percent, while remaining 83 percent higher than a year ago. The unadjusted Purchase Index increased 3 percent for the week and was 16 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 70.7 percent of total applications from 72.3 percent the previous week. The adjustable-rate mortgage share of activity increased to 2.2 percent of total applications.
“Mortgage rates were mixed last week, with the 30-year fixed rate rising to its highest level since November 2020 at 2.95 percent, and all other rates in the survey posting a decline. In a sign that borrowers are increasingly more sensitive to higher rates, large declines in government purchase applications and refinance applications pulled overall activity lower. The refinance index has now declined for two straight weeks, but is still 83 percent higher than last year,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.