MBA data shows significant decline in mortgage applications

US mortgage applications have decreased for the first time in three weeks amid a continued surge in mortgage rates, the Mortgage Bankers Association reported Wednesday.

Mortgage application volume fell 11% week over week as mortgage rates stayed over 2% higher than a year ago and close to the highest levels since 2009. Refinance and purchase applications were also on a downturn, down 10% and 12%, respectively, from the previous week.

“For borrowers looking to refinance, the current level of rates continues to be a significant disincentive,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Purchase applications fell 12% last week, as prospective homebuyers have been put off by the higher rates and worsening affordability conditions.”