Looking to buy a house? You might want to reconsider your timing, as home borrowing costs just rose to their most expensive level since June, the Mortgage Bankers Association said on Wednesday.
The average interest rate on a 30-year fixed-rate mortgage climbed to 3.70 percent, the highest rate since 3.75 percent in the week ended June 24, the Washington-based group said.
Amid the high costs, weekly mortgage refinancing activity fell last week to its lowest since June.
The trade group's seasonally adjusted index on refinancing activity fell 8 percent in the week ended Sept. 16 to its lowest level since the week of June 24.
Meanwhile, MBA's seasonal adjusted index on applications for loans to buy a home, which is seen as a gauge on future housing activity, fell 7 percent from a week earlier.
This week's domestic housing data were mixed.
The government said on Tuesday housing starts fell more than expected by 5.8 percent to an annualized 1.14 million units in August. Analysts blamed the drop on the flooding in Texas and Louisiana, which cut into construction in the South.
On the other hand, the National Association of Home Builders and Wells Fargo said on Monday their index on their members' confidence increased to 65 points in September, matching its strongest level since October 2015. This compared with a downwardly revised 59 in August.
The MBA's index on overall mortgage activity fell 7.3 percent on a seasonally adjusted basis from a week earlier.