Higher Interest Rates Weigh on the Housing Market
The housing recovery is often considered one of the strongest areas of the economy, but higher interest rates continue to weigh on consumers.
According to the Mortgage Bankers Association’s latest report, for the week ended July 12, loan application volume dropped 2.6 percent on a seasonally adjusted basis from one week earlier. That’s the ninth weekly decline in 10 weeks and comes after a 4 percent decline in the previous week. The figures include both refinancing and home purchase demand, and cover more than 75 percent of all domestic retail residential mortgage applications.
The industry group’s refinance index fell 4 percent to reach its lowest level since July 2011, while the unadjusted purchase index jumped 23 percent.
Overall, the refinance share of mortgage activity accounted for 63 percent of total applications, which is slightly worse from the previous week and its lowest level since April 2011.