Interest rates for home loans have been rising each week this year, so each week homeowners have had less incentive to refinance their mortgages. This will continue to drop as the rates are speculated to go up even more.
Another drop in refinances last week kept mortgage application volume basically unchanged from the previous week, according to the Mortgage Bankers Association. The refinance share of all mortgage applications fell to 40 percent, the lowest since 2008.
The main reason for refinances is driven by homeowners looking to borrow against the rising value on their homes rather than those scouting to reduce their monthly mortgage payments
This year will see more purchase loans than refinance loans.