Applications for home loans in the U.S. fell for a second week and higher interest rates reduced refinancing activity , according to figures released Wednesday by a group of industry figures .
The activity index of mortgage applications Mortgage Bankers Association (MBA for short ), which measures demand for refinancing and home purchases fell 4.6% in the week ended August 16.
The decline comes at a time when the 30-year mortgage rates increased 12 basis points to 4.68 % , matching the scored maximum year in July.
Interest rates soared in late May after the Federal Reserve said it could start cutting at the end of the year its bond purchases by $ 85.000 per month , which investors believe could begin in September.
The prospect of the Fed reduce its stimuli altered the financial markets. Yields on the benchmark Treasury 10-year benchmark touched a two-year high of 2.9 %, more than one percentage point above the level of May.
The demand for refinancing existing loans declined as rates increased .
The refinance index fell 7.7 % last week , its biggest annual fall since late June .