Mortgage applications decreased 5.5 percent last week following a spike in interest rates according to the Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association. The survey’s 30-year fixed rate of 4.22 percent is at its highest level since October 2014. Increasing rates have had an impact on both new mortgage apps and refinance activity. Mike Fratantoni, chief economist for the Mortgage Bankers Association told HousingWire, “Rising rates continue to create volatility in weekly mortgage applications activity… The refinance index dropped to the lowest level since January 2015 as rates continued to increase.” The VA share of mortgage applications was the only category to remain steady while the ARM share actually increased to 6.5 percent of total applications.

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