U.S. weekly mortgage applications drop 1.9 percent

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 1.9 percent in the week ended January 15, following a 16.7 percent surged in the previous week.

According to the report, refinance applications declined 4.7 percent, while applications to purchase a home increased 2.7 percent.

Meanwhile, the average fixed 30-year mortgage rate rose from 2.88 percent to 2.92 percent.

“Market expectations of a larger than anticipated fiscal relief package, which is expected to further boost economic growth and lower unemployment, have driven Treasury yields higher the last two weeks,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “After a post-holiday surge of refinances, higher rates chipped away at refinance demand.”