Refinance demand collapses
Weekly mortgage refinance demand is down more than 40% over the past month — rising rates are shutting off a huge chunk of refinance activity. (cnbc.com)
MBA’s Weekly Mortgage Applications Survey for the week ending March 27 shows the Market Composite Index fell 10.4% from the prior week and the MBA’s Refinance Index dropped roughly 17% week‑over‑week. (mba.org) The MBA’s contract rate on a 30‑year fixed mortgage climbed 14 basis points to 6.57% in that week — the highest level since August — after nearly a half‑percentage‑point surge over the prior four weeks. (bloomberg.com) Refinance applications accounted for 45.3% of total applications, down from 49.6% the previous week, while adjustable‑rate mortgages made up about 8.0% of activity. (realtor.com) MBA commentary noted purchase activity also cooled: the seasonally adjusted Purchase Index fell about 3% for the week and stood roughly 1% above its level a year earlier, with FHA and VA purchase applications holding up better than conventional loans, MBA chief economist Mike Fratantoni said. (mortgagenewsdaily.com) MBA analysts and market reports cited rising oil prices and the conflict in the Middle East as drivers that pushed Treasury yields and mortgage rates higher, reducing refinance economics. (mba.org) Even with the recent pullback, the MBA’s Refinance Index remained about 33% higher than the same week one year ago, indicating sharp short‑term volatility rather than a permanent absence of refinancing demand. (mortgagenewsdaily.com)
