Sharp Decline in Mortgage Applications

In a surprising turn of events, mortgage applications in the United States witnessed a significant drop of 8.5% in the week ending April 11, as reported by the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey this Wednesday.

Rising Interest Rates Deter Buyers

The survey highlighted an increase in the average contract interest rate for 30-year fixed-rate mortgages by 0.2 percentage points, reaching 6.81%. This rise has contributed to a 5% decrease in the purchase index to 164.2 and a 12% fall in the refinance index to 841.9.

Economic Uncertainty Looms Large

Mike Fratantoni, MBA Chief Economist, expressed concerns over the current economic climate, stating, "Economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase." Despite the downturn, purchase volume remains nearly 13% higher than last year's figures, indicating a complex market scenario.