Mortgage applications at a 13-year low

Mortgage application volume sinks to 13-year low

Greg Bianco

Broadcaster/Web Producer- Washington Business Journal

Email

Higher interest rates and the Federal Reserve’s taper announcement have contributed to the lowest pace of mortgage application volume in 13 years, according to the Mortgage Banker's Association.
For the week ending Dec. 20, the number of mortgage applications fell more than 6 percent on a seasonally adjusted basis from the prior week. It’s the second straight week of declines.
“Government purchase application volume is almost 25 percent below where it was at this time last year, with the larger drop compared to conventional purchase likely due to the increase in FHA premiums over the course of the year,” said Mike Fratantoni, MBA’s vice president of research and economics.
Interest rates have generally risen since the beginning of November, producing fewer mortgage applications.
The share of refinancing activity fell to 65 percent of total applications, down from 66 percent in the prior week, and at the lowest level since July 2008.

Greg Bianco covers general assignment and provides business coverage for WTOP.

Next Article: Carlyle Group closes sale of ARINC for $1.4B