The American Mortgage Bankers Association's seasonally adjusted index shows a 6% drop in weekly mortgage demand. Last week, the average contract interest rate for 30-year fixed-rate mortgages that meet standard loan balance requirements rose from 7.12% to 7.30%. In a loan with a 20% down payment ratio, the number of loan points including the loan origination fee increased from 0.73 to 0.75. Demand for refinancing has been hit the hardest, because in the current environment of higher interest rates, very few borrowers can benefit from it. The number of home loan refinancing applications fell 9% this week, and 56% lower than the same period last year. The share of refinancing in the total mortgage business volume fell to 38.3% from 39.3% the previous week. MBA economist Joel Kan said in a statement: “Government-supported refinancing operations fell 13%, with both FHA and VA loan applications showing double-digit weekly declines.”

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