Mortgage application volume dipped 1.6% during the week ended March 15, as the average rate for a 30-year fixed-rate mortgage increased to 6.97%, up from 6.84% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 3% compared with the previous week and were down 3% compared with the same week one year ago.
Applications for purchases decreased 1% compared with the previous week and were down 14% compared with the same week one year ago.
“Mortgage rates increased last week as incoming data showed inflation was still hotter than expected, which stoked concerns about the timing and extent to which the Fed might be able to reduce the fed funds rates this year,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “After three weeks of declines, the 30-year fixed mortgage rate increased to 6.97 percent.
“Mortgage applications continued to show sensitivity to rate movements, and both purchase and refinance activity decreased over the week,” Kan adds. “With housing supply low and prices high, the average loan size for purchase applications increased to the highest level since May 2022.”
The refinance share of mortgage activity decreased to 31.2% of total applications, down from 31.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.2% of total applications.
Photo: Kaleb Tapp