Home-loan rates for so-called conforming mortgages eligible to be purchased by Fannie Mae and Freddie Mac increased to the highest level since the beginning of 2019.
The surge in lending for mortgages backed by the Department of Veterans Affairs came after rates dropped to a record low in the closing days of 2020.
Rates are surging after the Fed ended a pandemic-era bond-buying program and said it would discuss at its May meeting a reduction of its balance sheet.
The Fed's tightening of monetary policy sent mortgage rates soaring to a three-year high this week, making it tougher for families to buy homes.
Mortgage rates tumbled in the U.S. as the Russian invasion of Ukraine caused global investors to shift assets into dollar-denominated bonds.
Rates are rising as the bond markets lose their biggest buyer – the Federal Reserve.
Mortgage rates jumped to a two-year high this week as the economy showed signs of shaking off the Omicron surge.
The upward trajectory of mortgage rates stalled as economic data showed Omicron's impact on the U.S. economy.
The 18% jump in mortgage refinancing applications came as home-loan rates rose to a 22-month high last week.
As mortgage rates hover near two-year highs, Federal Reserve Bank of Kansas City President Esther George gave a speech on Monday that likely will send them higher.
