Mortgage applications dropped last week as an increase in borrowing costs led to a decline in home refinancing.
The Mortgage Bankers Association’s index decreased 4.1% in the period ended Sept. 19 after a 7.9% advance the week before, figures from the Washington-based group showed Wednesday.
The refinancing gauge plunged 7%, while the purchase applications measure declined 0.3%.
The average rate on a 30-year fixed loan rose for a third week, reaching to a four-month high of 4.39%. The average on a 15-year mortgage held at 3.56%.
The share of applicants seeking to refinance fell to 55.7%, from the prior week’s 57.2%, which was the highest since late February.