Mortgage applications fell for the second week in a row as interest rates continued to climb, tempering consumer demand.
Home loan application volume dropped 3.2% on a seasonally adjusted basis – 4% when unadjusted – for the week ending August 4, according to the Mortgage Bankers Association (MBA).
“Treasury yields rates rose last week, and mortgage rates followed suit, due to a combination of the Treasury’s funding announcement and the downgrading of the US government debt rating,” said MBA deputy chief economist Joel Kan. “Rates increased for all loan types in our survey, with the 30-year fixed mortgage rate increasing to 7.09%, the highest level since November 2022. Additionally, the rate for FHA mortgages increased to 7.02%, the highest rate since 2002.”
Source: mpamag.com