Applications to purchase or refinance a home fell 19.5% for the week ended December 14 as interest rates inched up, according to the Mortgage Bankers Association latest survey.
It was the largest drop since 2004, mainly attributed to a sharp decline in refinance activity, which fell a staggering 27.3% to its lowest level in four weeks.
Purchase applications were also off, falling 10.6% on a seasonally adjusted basis to mark their own four-week low.
Despite the weekly decline, total applications were up an unadjusted 1.7% compared with the same week in 2006.
Refinances accounted for 53.2% of all applications last week, down from 57.6% the previous week, while the share of adjustable-rate mortgages increased to 9.9% from 9.4%.
The average 30-year fixed-rate mortgage was 6.18% last week, up 11 basis points from the week before, while the 15-year fixed-rate mortgage rose six basis points to 5.78%.
One-year adjustable-rate mortgage rates climbed 17 basis points to 6.48%, the highest level since late August, according to MBA data.
The MBA’s weekly survey, compiled every week since 1990, covers about half of all U.S. retail residential mortgage applications.
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