According to a study by the Mortgage Bankers Association, the rise in mortgage rates led to a 3.9% drop in applications for the week ending Aug. 13.
“Mortgage rates were at their highest in about a month, with the 30-year fixed rate increasing from 3% to 3.06%,” said Joel Kahn, deputy vice president of economic and industry forecasts for the MBA. “Mortgage rates followed a general increase in Treasury yields last week, which began with a strong July employment report and then slowed due to weaker consumer sentiment and concerns about rising COVID-19 cases.”
The MBA Composite Market Index fell 3.9% seasonally and 4% unadjusted from a week earlier. The number of applications for refinancing decreased by 5% compared to the previous week and 8% less than in the same week last year. Meanwhile, the number of buy orders fell 1% over the week.