Refinancings plummet as mortgage rates rise

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The Mortgage Banker’s Association index of loan application volume dropped 18.6-percent from last week, with refinancing applications falling 24.6-percent.

It’s the sixth consecutive week of declines for the Refinance Index, which is at its lowest level since April.

“Refinance application volume dropped sharply this week as mortgage rates held near six month highs,” said MBA Vice President of Research and Economics Michael Fratantoni in a press release today.

Further analysis can be found here.

One Response to Refinancings plummet as mortgage rates rise

  1. With refinance business down, lenders will be focusing more on purchase loans. If the government cuts the mortgage interest deduction, home buying demand may drop.

    December 22, 2010 at 6:55 pm