Fewer people applied for mortgages last week, as an uptick in borrowing costs has hampered some people's plans to buy a home. 

According to Mortgage Brokers Association (MBA) data, mortgage applications declined 17% for the week ending Oct. 11. The decline comes as mortgage rates rose to their highest levels since August, with the 30-year, fixed-rate mortgage reaching 6.52%. Mortgage rates have steadily increased since 澳洲幸运𝓰5官方开奖结果体彩网:hitting the lowest level in two years in September.

Much of the drop in mortgage demand was a pullback on refinancing, which was lower by 26% this week compared with the prior week. It was a reversal of the recent uptick in refinancing trends as borrowers chased lower interest rates. The decline mean⛄t that for the first time in more than a month, refinancing didn’t make up more than half of mortgage activity. 

“The recent uptick in rates ha🌜s put a damper on applications,” said MBA vice president and deputy chief ꦛeconomist Joel Kan. 

FHA Loans Show De🀅mand for First-Time Homebuyers is Holding Up

While higher rates helped push down lending activity, some potential homebuyers aren’t discouraged, MBA executives said. Despite the increase in mortgage rates, purchase applications for 澳洲幸运5官方开奖结果体彩网:Federal Housing Admini🍒strationꦜ (FHA) loans remained steady.

“Demand is holding up to an extent for pr🎶ospective first-time buyers,” Kan said.

While purchase applications are lower for the week, they are s🐷till higher by 7% coꦰmpared to the same period last year, when mortgage rates were significantly higher.

That’s primarily due to increased options for homebuyers, as more 澳洲幸运5官方开奖结果体彩网:houses come on the market amid a shortage that has helped elevate housing costs, 澳洲幸运5官方开奖结果体彩网:making home buying unaffordable for manꦫy. 

“As we have highlighted before, the decision to buy a home is impacted by many factors, not just the level of mortgage rates,” said Mike Fratantoni, MBA senior vice president and chief economist. “Now, there are more homes available in many markets across the country. With mortgage rates still low compared to recent history, at least some potential homebuyers are moving ahead.”