Mortgage application volume jumped 9.7% during the week ended March 1, as the average rate for a 30-year fixed-rate mortgage dropped to 7.02%, down slightly from 7.04% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Mortgage applications had dropped for the previous three weeks.
Applications for refinances increased 8% compared with the previous week and were down 2% compared with the same week one year ago.
Applications for purchases increased 11% compared with the previous week but were down 8% compared with the same week one year ago.
“The latest data on inflation was not markedly better nor worse than expected, which was enough to bring mortgage rates down a bit, with the 30-year fixed mortgage rate declining slightly last week to 7.02 percent,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Mortgage applications were up considerably relative to the prior week, which included the President’s Day holiday.
“Of note, purchase volume – particularly for FHA loans – was up strongly, again showing how sensitive the first-time homebuyer segment is to relatively small changes in the direction of rates,” Fratantoni adds. “Other sources of housing data are showing increases in new listings, which is a real positive for the spring buying season given the lack of for-sale inventory.”
The refinance share of mortgage activity decreased to 30.2% of total applications, down from 31.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.7% of total applications.
Photo: Jungwoo Hong