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Mortgage Applications Drop Due to Rising Rates, Winter Storms

  • February 24th 2021

by UrbanTurf Staff

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Mortgage demand fell last week and rising rates and snow were to blame. 

Mortgage applications dropped 11.4% compared to the previous week, according to data released by the Mortgage Bankers Association today.

"Mortgage rates have increased in six of the last eight weeks, with the benchmark 30-year fixed rate last week climbing above 3 percent to its highest level since September 2020," Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting, said in a statement. "Additionally, the severe winter weather in Texas affected many households and lenders, causing more than a 40 percent drop in both purchase and refinance applications in the state last week."

Despite the drop in applications, refinance activity was still 50 percent higher than at the same time last year. 

This article originally published at https://dc.urbanturf.com/articles/blog/mortgage-applications-drop-due-to-rising-rates-winter-storms/17926.

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