This is due to the increasing mortgage rates and these rates haven't been that high. In fact, they are still very close to historical lows. However, that small little bump has sent refi activity straight down.
The Mortgage Bankers Association said its market composite index decreased 12.9% on a seasonally adjusted basis for the week ended Jan. 21. Unadjusted, the index fell 12% from the prior week. The MBA said results don't include an adjustment for last Monday's Martin Luther King Jr. holiday.
After rising for three weeks, the number of refinancing applications fell 15.3% last week to the lowest point in 12 months, according to the MBA. And purchase applications didn't fare any better dropping 8.7% to the lowest point since OctoberRead it all