April 7 (UPI) -- Mortgage refinancing applications in the United States have fallen off by about 20% over the past 12 months as loan rates are at their highest level in nearly a year, an industry report said Wednesday.
The Mortgage Bankers Association said in its report that overall U.S. applications and refinance applications are both down 5% over the past week. Refinancings are off 20% over the same period a year ago.
The average rate for a 30-year mortgage under $548,000 or less is up to 3.36%, the highest level in 10 months.
"The return of rates to the highest level since last June contributed to a slowdown in applications for both purchases and refinances," Joel Kan, MBA associate vice president of economic and industry forecasting, said in a statement.
"The rapidly recovering economy and improving job market is generating sizeable home buying demand, but activity in recent weeks is constrained by quicker home-price growth and extremely low inventory."
Over the last 10 weeks, refinance applications are down more than 30%, Kan added.
Refinancings accounted for 60% of all applications, followed by VA applications (14%) and FHA applications (10%).
