There was barely a increase in mortgage rates. I believe that most buyers have canceled their purchases either due to credit issues or debt ceiling uncertainties.
Mortgage applications declined 5% last week as interest rates spiked across the United States, an industry trade group said Wednesday.
The slowdown follows a week of robust activity, with mortgage applications rising more than 15% a week earlier on increased refinacing activity.
The Mortgage Bankers Association said its market composite index, a measure of loan mortgage application volume, dropped 5% on a seasonally adjusted basis and 4.9% on an unadjusted basis when compared to a week earlier.
The refinance index and the seasonally adjusted purchase index fell 5.5% and 3.8%, respectively, from a week ago, while the unadjusted purchase index declined 3.4%.
The four-week moving average for the purchase index dropped 0.5% this past week, while the four-week moving averages for the refinance index and market index declined by 0.3% each.
Refinance activity made up 69.6% of total application volume, down from 70% a week prior.
The interest rates for a 30-year, fixed-rate mortgage rose to 4.57% last week from 4.54% a week earlier. The average 15-year, fixed-rate mortgage increased slightly to 3.67% from 3.66%.
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