Mortgage application volume fell 1.9 percent on a seasonally adjusted basis for the week ended March 7, according to the latest Mortgage Bankers Association Weekly Mortgage Applications Survey.
On an unadjusted basis, the Index decreased 1.4 percent compared to one week earlier, and was off 3.4 percent from the same period a year ago.
The drop in applications was led by a 4.7 decrease in refinance activity, offsetting a 1.6 percent gain in purchases and a 10 percent increase in government loans, largely made of up FHA loans.
The refinance share of applications stumbled to just 50.6 percent of the total from 52.4 percent the previous week, while the adjustable-rate mortgage (ARM) share of activity fell to 15.5 from 17.3 percent the previous week.
After plummeting last week, interest rates surged back to previous levels, with the average 30-year fixed mortgage climbing to 6.37 percent from 5.98 percent a week earlier.
The 15-year rose nearly half a point week-to-week, rising to 5.72 percent from 5.26 percent a week before.
However, the most startling rate movement was seen in the one-year ARM, which jumped a whopping 89 basis points to 6.72 percent.
(photo: mayr)
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