Homebuyers again retreat to the sidelines as higher rates crimp affordability

Source: USA Today — 

Homebuyers started the year on a positive note when declining mortgage rates signaled increasing affordability.

Mortgage applications rose 28% in one week in the middle of January as rates dipped to 6.2%.

But that frenzy of activity was short-lived as homebuyers are pulling back once again, reversing a trend seen earlier this year.

As the average rate on a 30-year fixed rate mortgage climbed up at 6.65%, its highest level since early November when rates topped 7%, loan application volume decreased 6%, according to the Mortgage Bankers Association.

Mortgage application volumes were 44% lower than the same week one year ago. The Refinance Index also decreased 6% from the previous week and was 74% lower than the same week one year ago as a majority of homeowners are already locked into lower rates.