The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. plunged 11.4 percent in the week ended February 19, following a 5.1 percent decrease in the previous week. This marked the largest weekly decline since April 5 of 2020.

According to the report, refinance applications dropped 1.3 percent, while applications to purchase a home fell 11.6 percent.

Meanwhile, the average fixed 30-year mortgage rate rose from 2.98 percent to 3.08 percent, the highest since the week ended September 20.

“Mortgage rates have increased in six of the last eight weeks, with the benchmark 30-year fixed rate last week climbing above 3% to its highest level since September 2020,” noted Joel Kan, an MBA economist. “As a result of these higher rates, overall refinance activity fell to its lowest level since December 2020.” Kan also added that the severe winter weather across the South last week, and especially the power outages across Texas definitely played a role. That state witnessed a more than 40% drop in purchase and refinance applications last week, he said.