WASHINGTON, Wednesday, April 24, 2024- Mortgage application activity in the United States saw a decline last week, coinciding with a rise in interest rates. Data released by the Mortgage Bankers Association (MBA) on Wednesday 24 showed a decrease in applications compared to the same period in 2023.1
The MBA’s index of mortgage applications dipped by 2.7% for the week ending April 19th. This decline coincides with an increase in average interest rates for 30-year fixed-rate mortgages, which climbed to 7.24% last week.
While this represents a decrease from the peak of 8% seen in October 2023, it marks the highest level for mortgage rates since November.
Applications for home purchases were down 1% from the previous week and 15% year-over-year.
The Federal Reserve’s recent interest rate hikes aimed at curbing inflation are a key factor driving up mortgage rates.
A separate report indicates that available home supply remains down a significant 34.3% compared to pre-pandemic levels.
- foxbusiness.com: https://www.foxbusiness.com/economy/mortgage-demand-falls-again-interest-rates-soar-past-7[↩]
