Mortgage Applications Slow as Rates Rise

Washington, DC, March 21, 2012 -- Mortgage application volume declined last week, led by a steep drop in refinancing demand as rates increased, according to the Mortgage Bankers Association.

MBA said its seasonally adjusted index of mortgage application activity fell 7.4% in the week ended March 16.

The index of refinancing applications lost 9.3%, while the gauge of loan requests for home purchases was off 1.0%.

The refinance share of total mortgage activity fell to 73.4% of applications from 75.1% the previous week.

Fixed 30-year mortgage rates averaged 4.19% from 4.06%.

"With the rate increase last week, refinances are obviously slowing," said Jay Brinkmann, chief economist of the MBA, said in a press release.