Mortgage application volume decreased 6.2% on an adjusted basis during the week ended March 14, as the average rate for a 30-year fixed-rate mortgage increased to 6.72%, up from 6.67% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The week-over-week decrease follows an 11.2% increase that came during the previous week.
Applications for refinances decreased 13% compared with the previous week but were up about 70% compared with the same week one year ago.
Applications for purchases increased 0.1% compared with the previous week and were up 6% compared with the same week one year ago.
“Mortgage rates increased for the first time in nine weeks, with the 30-year fixed rate rising to 6.72 percent,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “This increase in rates led to a decrease in refinance volume. However, purchase application volume inched up to its highest level in six weeks, led by a 3 percent increase in FHA purchase applications.”
“Overall, purchase application volume is up 6 percent compared to last year at this time,” Fratantoni adds. “Growing inventories of homes on the market and steadier mortgage rates are supporting homebuying activity thus far this spring.”
The refinance share of mortgage activity decreased to 42.0% of total applications, down from 45.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.7% of total applications.
Photo: Scott G