Mortgage applications decreased 1.6% during the week ended March 28, as the average rate for a 30-year, fixed-rate mortgage dropped to 6.70%, down from 6.71% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 6% compared with the previous week but were up 57% compared with the same week one year ago.
Applications for purchases increased 2% compared with the previous week and were up 9% compared with the same week one year ago.
“Treasury yields continue to be volatile as economic uncertainty dominates markets,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Most mortgage rates finished last week lower, with the 30-year fixed essentially unchanged at 6.70 percent.”
“Last week’s level of purchase applications was its highest since the end of January, driven by a 3 percent increase in conventional purchases, while government purchase applications were down 2 percent,” Kan adds “Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook. Refinance applications were down almost 6 percent last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.”
The refinance share of mortgage activity decreased to 38.6% of total applications, down from 40.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.5% of total applications.
Photo: Romain Dancre