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There Is Now No Doubt That Rising Mortgage Rates Are Hitting The Housing Market

Sam RoSep 11, 2013, 17:28 IST

REUTERS/Robert Galbraith It's becoming very clear that rising mortgage rates are having a material impact on the housing a market.

The Mortgage Bankers Association's (MBA) latest weekly survey of mortgage applications showed plunging numbers across the board.

Mortgage applications for the week ending September 6 fell 13.5% from a week ago. This is a five-week low.

Refinancing activity plunged 20% to its lowest level since June 2009.

The average 30-year conforming fixed mortgage rate ($417,000 or less) climbed to 4.80% from 4.73% a week ago.

The average 30-year fixed mortgage rate with jumbo loans climbed to 4.84% from 4.71% a week ago.

Interest rates began to rise in May when the Federal Reserve said it could soon taper its monthly purchases of $45 billion worth of Treasury securities and $40 billion worth of mortgage backed bonds.