(Reuters) - Applications for U.S. home borrowings dropped for a second straight week and higher interest rates decreased refinancing activity, facts and figures from an commerce group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage submission activity, which encompasses both refinancing and dwelling buy demand, dropped 4.6 per hundred in the week ended August 16.
The down turn came as 30-year mortgage rates increased 12 basis points to 4.68 percent, equivalent the year's high first strike in July.
Interest rates spiked in late May after the Federal Reserve indicated it could start climbing back its $85 billion in monthly bond purchases by the end of the year, with investors now betting it could happen as shortly as September.
Prospects of the Fed tapering its incentive has made economic markets jittery. This week, U.S. standard 10-year Treasury yields strike a two-year high of 2.9 per hundred, more than a percentage issue overhead their level in May.
Demand to refinance living loans has turned down as rates have ascended. The refinance catalogue lost 7.7 per hundred last week, its large-scale every week drop since late June, and is down 62.1 per hundred since peaking in the week ending May 3. The refinance share of total mortgage undertaking fell to 62 per hundred from 63 per hundred the former week.
Rates stay equitably low by chronicled standards, however, and the measure of lend requests for home buys, a premier sign of home sales, rose 1.2 per hundred, after dropping 5.4 per hundred the previous week.
The survey wrappings over 75 per hundred of U.S. retail residential mortgage applications, according to MBA.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage submission activity, which encompasses both refinancing and dwelling buy demand, dropped 4.6 per hundred in the week ended August 16.
The down turn came as 30-year mortgage rates increased 12 basis points to 4.68 percent, equivalent the year's high first strike in July.
Interest rates spiked in late May after the Federal Reserve indicated it could start climbing back its $85 billion in monthly bond purchases by the end of the year, with investors now betting it could happen as shortly as September.
Prospects of the Fed tapering its incentive has made economic markets jittery. This week, U.S. standard 10-year Treasury yields strike a two-year high of 2.9 per hundred, more than a percentage issue overhead their level in May.
Demand to refinance living loans has turned down as rates have ascended. The refinance catalogue lost 7.7 per hundred last week, its large-scale every week drop since late June, and is down 62.1 per hundred since peaking in the week ending May 3. The refinance share of total mortgage undertaking fell to 62 per hundred from 63 per hundred the former week.
Rates stay equitably low by chronicled standards, however, and the measure of lend requests for home buys, a premier sign of home sales, rose 1.2 per hundred, after dropping 5.4 per hundred the previous week.
The survey wrappings over 75 per hundred of U.S. retail residential mortgage applications, according to MBA.
