It would appear that the 9% spike in mortgage application volume three weeks ago was merely an anomaly.
According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending March 14, application volume decreased 1.2%, on an adjusted basis, compared to the previous week.
It was the second consecutive week that application volume declined. Typically at this time of year, lenders would see increasing volume as home shoppers emerge for the spring buying season.
On an unadjusted basis, the index decreased 1% compared with the previous week.
Refinances also fell slightly – decreasing 1% from the previous week – bringing the refinance share of mortgage activity to 56.5% of total applications, down from 57% the previous week. It was the sixth consecutive week in which refinance volume dropped.
The seasonally adjusted purchase index, an indicator of incoming application volume, also decreased 1% from one week earlier. On an unadjusted basis, it was essentially unchanged compared with the previous week and was 15% lower than the same week one year ago.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8% of total applications.
Typically, when mortgage interest rates decrease, lenders will see at least a slight increase in purchase and refinance volume; however, that was not the case last week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.50%, down from 4.52% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.39%, down from 4.41%.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.13%, down from 4.18%.
The average rate for a 15-year FRM was 3.52%, down from 3.53%.
The average rate for a 5/1 ARM was 3.09%, down from 3.18%.
All rates are based on closings.