Mortgage rates climbed for the third straight week, keeping prospective homebuyers and current homeowners on the sidelines.
For the week ended Nov. 14, mortgage application volume declined by 5.2 percent, following the previous week’s 0.6 percent increase, according to data from the Mortgage Bankers Association released on Nov. 19.
This represented the sharpest drop in almost two months.
“Application activity over the week was lower, with potential homebuyers moving to the sidelines again, although there was a small increase in FHA [Federal Housing Administration] purchase applications,” said Joel Kan, deputy chief economist and vice president at the Mortgage Bankers Association.
Refinancing demand slipped for the second consecutive week, tumbling 7 percent. Despite the recent slide, refinance applications are still about 125 percent higher than a year ago….