Mortgage applications decreased by 0.7% from one week earlier, per the latest data from the Mortgage Bankers Association (MBA), released today.
On an unadjusted basis, the Index decreased 0.4% for the week ending March 22 compared with the previous week. The Refinance Index decreased 2% from the previous week and was 9% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased 0.2% from the week earlier. Meanwhile, the unadjusted Purchase Index increased 0.2% compared with the previous week and was 16% lower than the same week one year ago.
“Mortgage application activity was muted last week despite slightly lower mortgage rates. The 30-year fixed rate edged lower to 6.93 percent, but that was not enough to stimulate borrower demand,” said MBA’s Vice President and Deputy Chief Economist Joel Kan. “Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market. Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually, as we forecast that rates will move toward 6% by the end of the year. Similarly, with rates remaining elevated, there is very little incentive right now for rate/term refinances.”
The refinance share of mortgage activity decreased to 30.8% of total applications from 31.2% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7% of total applications.
The FHA share of total applications edged down to 12% from 12.1% the week prior. The VA share of total applications decreased the same amount to 12% from 12.1% the week prior. The USDA share of total applications remained unchanged from 0.5% the week prior.
Other takeaways:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.93% from 6.97%, with points decreasing to 0.60 from 0.64 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) remained unchanged from 7.14%, with points decreasing to 0.38 from 0.54.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.75% from 6.89%, with points decreasing to 0.97 from 1.04 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.46% from 6.49%, with points increasing to 0.75 from 0.70 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
