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5开奖号码历史查询:hit🌟ting 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 inte𓃲rest rates. The decline meant 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 has put a damper on applications,” said MBA vice president and deputy chief economist Joel Kan. 

FHA Loans Show Demand 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开奖号码历史查询:Federal Housing Ad▨ministration (FHA) loans remained steady.

“Demand is 🦩holding up to an extent for prospe🐷ctive first-time buyers,” Kan said.

While purchase applications are lower for༺ the week, they are still higher by 7% compared 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开奖号码历史查询:houses come on the market amid a shortage that has helped elevate housing costs, 澳洲幸运5开奖号码历史查询:making home b🍷uying uꦺnaffordable for many. 

“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.”