Total mortgage application volume fell 2.0% during the week ended March 21, as rates decreased slightly, however purchase applications continued to increase, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 5% compared with the previous week but were up 63% compared with the same week one year ago.
Applications for purchases increased 1% compared with the previous week and were up 7% compared with the same week one year ago.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balance was 6.71%, down from 6.72% the previous week.
“Purchase applications saw the strongest weekly pace in almost two months and were 7 percent higher than a year ago,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Last week’s purchase activity was driven primarily by a 6 percent increase in FHA applications, as the combination of loosening housing inventory and slowly declining mortgage rates have presented this segment of buyers with more opportunities. Additionally, VA purchase applications saw a modest increase over the week. Overall applications declined, however, as refinance applications were down 5 percent to its lowest level in a month.”
“Markets remained focused on potential trade policy changes, while the Fed held the funds rate its current level, resulting in the 30-year fixed rate averaging 6.71 percent last week,” Kan adds.
The refinance share of mortgage activity decreased to 40.4% of total applications, down from 42.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications.
Photo: Annika Wischnewsky