Mortgage applications increased 2.9% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 24.
The refinance index increased 5% from the previous week and was 61% lower than the same week one year ago. The seasonally adjusted purchase index increased 2% from one week earlier. The unadjusted purchase index increased 2% compared with the previous week and was 35% lower than the same week one year ago.
“Application activity increased as mortgage rates declined for the third straight week. The 30-year fixed rate declined to 6.45%, the lowest level in over a month,” says Joel Kan, MBA’s vice president and deputy chief economist. “While the 30-year fixed rate remained 1.65 percentage points higher than a year ago, homebuyers responded, leading to a fourth straight increase in purchase applications. Home-price growth has slowed markedly in many parts of the country, which has helped to improve buyers’ purchasing power.”
The refinance share of mortgage activity increased to 29.1% of total applications from 28.6% the previous week. The adjustable-rate mortgage share of activity decreased to 7.7% of total applications.
The FHA share of total applications remained unchanged at 12.3% the week prior. The VA share of total applications decreased to 11.6% from 11.7% the week prior. The USDA share of total applications remained unchanged at 0.5% from the week prior.