Key takeaways: 

• The average agreement interest rate for 30-year fixed-rate mortgages with conforming loan credits ($647,200 or less) rose to 4.27% from 4.09% for loans with a 20% down payment.
• Applications to refinance a house loan, which are most susceptible to weekly rate moves, declined 3% for the week, seasonally adapted, and were 49% lower than the same week one year back.
• Mortgage applications to buy a house increased only 1% for the week and were 8% lower than the same week one year ago.

The previous week, a quick hop in mortgage rates soured demand from current homeowners and possible homebuyers, pushing mortgage applications to fall. With rates now back on the predicted upward trajectory, following a short drop at the beginning of the Russian attack on Ukraine, mortgage volume is probable to fall further in the forthcoming weeks.

The average agreement interest rate for 30-year fixed-rate mortgages with conforming loan credits ($647,200 or less) grew to 4.27% from 4.09%, with points increasing to 0.54 from 0.44 (including the origination cost) for loans with a 20% down payment, according to the Mortgage Bankers Association.

“Mortgage rates persist in being explosive due to the considerable delay about Federal Reserve policy and the crisis in Ukraine. Investors are weighing the effects of rapidly increasing inflation in the U.S. and numerous other parts of the world against the possibility for a deceleration in financial boost due to a renewed bout of supply-chain restrictions,” said Joel Kan, an MBA economist.

Applications to refinance a house loan, which are most exposed to weekly rate moves, declined 3% for the week, seasonally adjusted, and were 49% lower than the same week one year back, when rates were a whole percentage point lower.