US refinancing down over half in a year as mortgage rates climb
The 30-year fixed rate for loans up to $832,750 rose to 7.49%, and refinance applications fell 56% from a year ago.
Mortgage rates rose to their highest level in nearly three years. The average rate for 30-year fixed loans up to $832,750 went up to 7.49%, from 7.30%.
Refinancing means replacing your current home loan with a new one. Refinance applications fell 8% from the week before and were 56% lower than a year earlier.
Joel Kan, an economist with the Mortgage Bankers Association, said very few homeowners have a reason to refinance at these rates. Applications to buy a home fell 2% in the week and were 15% lower than a year ago.
Adjustable-rate loans, which can go up or down after a fixed period, made up a 10.3% share of mortgage applications.
- 7.49%
- 30-year fixed rate
- 56%
- Refinance decline year-over-year
- 15%
- Home purchase decline year-over-year
- 10.3%
- ARM share of applications
Why it mattersHigher rates make it harder for borrowers to save money by switching, and for buyers to afford homes.
AustraliaNo direct Australian effect yet, because these figures cover the US mortgage market only. Only an Australian rate rise would change that.
✓ Claims checked against the source and corrected before publish. checked 4 h ago
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