Mortgage application volume dropped 6.6% on an adjusted basis during the week ended February 14, despite a slight decrease in mortgage rates, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 7% compared with the previous week but were up 39% compared with the same week one year ago.
Applications for purchases decreased 6% compared with the previous week and were down 1% compared with the same week one year ago.
“Mortgage rates decreased on average over the week, as markets brushed off unexpectedly strong inflation data,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Despite mortgage rates declining, with the 30-year fixed mortgage rate dropping to 6.93 percent, mortgage applications decreased to their slowest pace since the beginning of the year.”
“Purchase applications were down for the week, as buyers remained on the fence, although loosening inventory may help support activity in the coming months,” Kan adds. “Refinance applications had been rising in previous weeks but dipped as rates remained close to 7 percent.”
The refinance share of mortgage activity decreased to 38.7% of total applications, down from 40.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.4% of total applications.
The average rate for a 30-year fixed-rate mortgage with conforming loan balance, based on contract signings, was 6.93%, down from 6.95% the previous week.
Photo: Ben Mullins