Mortgage applications dropped last week, slammed by back-to-back major hurricanes and higher interest rates. Total mortgage application volume, which includes for home purchases and refinances, dropped 9.7 percent week-over-week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday. Further, weekly applications were 21.5 percent lower than the same week a year ago.
Broken out, applications to buy a home dropped 11 percent during the week. Applications were still 1.9 percent higher than the same week a year ago, but the latest week’s total does mark the lowest annual growth rate since April, the MBA reports.
Refinance applications dropped 9 percent during the week and are 35 percent below a year ago.
The MBA reports that the 30-year fixed-rate mortgage averaged 4.04 percent, a slight uptick from 4.03 percent the week prior. Mortgage rates are at the highest level in a month.
"Applications decreased as Treasury yields rose 11 basis points over the week with news of higher than expected inflation and some market relief regarding the effect of the two major hurricanes in Texas and Florida," says MBA economist Joel Kan. "Florida had a 22 percent decrease in overall mortgage application activity over the week. Texas rebounded from Harvey's impact, showing a 27 percent increase in applications last week."
Source: “Hurricanes and Higher Rates Tank Mortgage Applications, Down 9.7%,” CNBC (Sept. 20, 2017)
