Mortgage application volume declined for the third consecutive week as interest rates continue to rise.
The Mortgage Bankers Association’s market composite index decreased 3.5% for the period ending Feb. 20, which included an adjustment for President’s Day, compared to the previous week. A week earlier, the index fell 13.2% on a seasonally adjusted basis from the prior seven days.
The refinance gauge dropped 8% week over week, while the purchase index was up 5%, the Washington-based trade group said on Wednesday.
Loan application volume was likely hindered by higher interest rates. The average contract interest rate for 30-year fixed conforming mortgages below $417,000 was up six basis points, to 3.99%. Meanwhile, 30-year fixed jumbo loan balances increased 17 basis points, to 4.09%.
Furthermore, mortgages backed by the Federal Housing Administration saw the average 30-year fixed rate rise by nine basis points, to 3.82%. Additionally, the average 15-year interest rate mortgage elevated four basis points, to 3.28%.
The MBA’s survey covers over 75% of all U.S. retail residential mortgage applications.