Mortgage Applications Sag as Interest Rates Surge
The mortgage application index, as compiled by the Mortgage Bankers Association, fell 5.5 percent for the week ending Feb. 4. Meanwhile, the average 30-year fixed-rate interest rate surged to a 10-month high to 5.13 percent from 4.81 percent.
The connection between the two data points is obvious. As rates climb, fewer people are interested in buying and refinancing -- though this may be an overreaction since rates are still historically low and home pricescontinue to slide.