Mortgage rates slightly rose last week, which caused demand for mortgage applications to plunge 4.1 percent on a seasonally adjusted week-to-week basis, the Mortgage Bankers Association reported Wednesday. “Rising oil prices and an improved outlook for global economic growth combined with declining U.S. jobless claims to push U.S. Treasurys higher during the latter half of last week,” says Lynn Fisher, the MBA’s vice president of research and economics. The 30-year fixed-rate mortgage rose to 3.85 percent last week, increasing from 3.83 percent the week prior. Refinance applications dropped 5 percent from the previous week. However, refinance volume remains nearly 12 percent higher than a year ago. Applications for home purchases dropped 2 percent last week, but are 14 percent higher than a year ago. In fact, purchase applications, despite the latest drop, are at the highest level since 2010. “The drop in applications may be mirroring buyer frustration in this spring's market,” CNBC reports. “There is definitely strong demand, but precious few affordable homes available.” In a recent survey by realtor.com®, 41 percent of home buyers said they had not yet found a home that met their needs. Thirty-percent of buyers said they could not find a home within their budget.

Source: CNBC