Mortgage Applications Fall 4.1% As 30-Year Fixed Rate Rises To 6.97%

According to CNBC, total mortgage application volume fell 4.1% last week from the prior week as fast-rising interest rates weighed on demand from both prospective homebuyers and current homeowners. The average contract rate on 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less rose to 6.97% from 6.85%, with points increasing to 0.72 from 0.67, while Mortgage News Daily said rates had moved above 7% by last Thursday and reached 7.22% on Tuesday. Applications to refinance a home loan dropped 9% for the week and were 65% lower than a year earlier, while purchase applications fell 1% and were 19% below the same week last year. Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, said concerns over energy prices, high inflation and future monetary policy pushed bond yields and mortgage rates higher last week, and that the current rate level removed much of the incentive to refinance for many borrowers.