MBA: mortgage applications down 18.6% last week

No surprise here. As mortgage rates have increased the refinance activity has dropped sharply.  

Refinancing applications have decreased for six consecutive weeks and volume is at the lowest point since the end of April after another 24.6% drop last week. The seasonally adjusted purchase index fell 2.5% last week. The unadjusted purchase index declined 4.9% and was 8.4% lower than a year earlier.

"Refinance application volume dropped sharply this week as mortgage rates held near six month highs," according to Michael Fratantoni, MBA vice president of research and economics. "Purchase applications fell for a second week, with the level of applications little changed over the past month, indicating that home sales are likely to remain relatively weak over the next few months.

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