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.
