Significant Decline in Mortgage Applications

In a recent survey by the Mortgage Bankers Association (MBA), it was revealed that mortgage applications in the United States experienced a notable 8.5% decrease in the week ending April 11, compared to the previous week.

Interest Rates on the Rise

The average contract interest rate for 30-year fixed-rate mortgages saw an increase, climbing by 0.2 percentage points to reach 6.81%. This rise in rates has contributed to a 5% drop in the purchase index, settling at 164.2, alongside a 12% fall in the refinance index to 841.9.

Expert Insights on Market Trends

"Economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase," stated MBA Chief Economist Mike Fratantoni. Despite the current downturn, purchase volume remains nearly 13 percent higher than last year's figures, highlighting a complex interplay of factors influencing the housing market.