Mortgage application volume decreased 1.2% during the week ended February 21, as the average rate for a 30-year fixed-rate mortgage fell to 6.88%, down from 6.93%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 4% compared with the previous week but were up 45% compared with the same week one year ago.
Applications for purchases were flat compared with the previous week but were up 3% compared with the same week one year ago.
“Treasury yields moved lower on softer consumer spending data as consumers are feeling somewhat less upbeat about the economy and job market,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “This pushed mortgage rates lower, with the 30-year fixed rate decreasing to 6.88 percent, the lowest rate since mid-December.”
“Applications were about one percent lower for the week, which included the President’s Day holiday, as purchase applications stayed flat from a week ago while refinance applications saw a small decline,” Kan says. “Purchase applications were up 3 percent from the same week last year. Increasing for-sale inventory in some markets has provided prospective buyers more options as we approach the spring homebuying season.”
“Although overall refinance application activity remained fairly weak, FHA refinance applications saw an 8 percent increase over the week,” Kan adds. “Compared to last year, overall refinance applications were up 45 percent.”
The refinance share of mortgage activity increased to 38.9% of total applications, up from 38.7% the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.4% of total applications.
Photo: Romain Dancre