The average interest rate for a 30-year fixed-rate mortgage increase to 3.30% from 3.23%, the highest rate in 8 months. The increase in mortgage rates has caused a decrease in refinance applications.
“The increase in rates triggered the fifth straight decrease in refinance activity to the slowest weekly pace since January 2020. Higher rates continue to reduce borrowers’ incentive to refinance,” said Joel Kan, Mortgage Bankers Association’s vice president of economic and industry forecasting. Mortgage applications for new homes rose 4% last week but is 9% lower than the same week last year.