After falling for five straight weeks, U.S. mortgage rates jumped last week, triggering a decline in U.S. mortgage demand. Total mortgage application volume fell 7.7% last week.
According to the Mortgage Bankers Association, the average U.S. interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.39% last week from 6.18% the previous week.
Applications to refinance a home loan also dropped 13% for the week and were 76% lower than the same week one year ago.
“Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time,” said Joel Kan, MBA’s vice president and deputy chief economist.