Mortgage applications slid 5 percent for the week ending April 2 amid higher interest rates, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey.
The Refinance Index decreased 5 percent from the previous week and was 20 percent lower than the same week one year ago. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 51 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 60.3 percent of total applications from 60.6 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.7 percent of total applications.
“The return of rates to the highest level since last June contributed to a slowdown in applications for both purchases and refinances. The rapidly recovering economy and improving job market is generating sizeable home buying demand, but activity in recent weeks is constrained by quicker home-price growth and extremely low inventory,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.