WASHINGTON–Mortgage applications declined 12% last week, and it wasn’t just all about the timing.
"Mortgage application volume typically drops sharply over the holidays. However, this year, as mortgage rates continued their upward climb reaching the highest levels in more than two years, overall application volume fell even more than the holiday slowdown would suggest," Michael Fratantoni, chief economist for the Mortgage Bankers Association, said in a released statement.
The decline in apps came even as the average rate on the 30-year fixed declined slightly to 4.39% from 4.45% one week earlier.
Mortgage applications to purchase a home fell 2% during the two-week period and ended the year 1% lower on the year, according to the MBA.