Economy

Mortgage applications drop as loan rates increase

by Vicki Needham - 03/30/11 3:48 PM ET

Mortgage rates for 30-year fixed-rate loans increased to 4.92 percent from 4.80 percent, while 15-year loans increased to 4.16 percent from 4.02 percent.

“Refinance volume predictably fell in response to these rate increases,” Fratantoni said. “As rates climb back to 5 percent, fewer homeowners have both the incentive and the ability to refinance. Purchase volume remained roughly flat as we enter what is typically the peak home buying season.”

The refinance share of mortgage activity decreased to 64.3 percent of total applications from 66.4 percent the previous week, the second lowest refinance share reported since May 2010.

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