Mortgage application volume fell 2.9 percent on a seasonally adjusted basis for the week ended March 14 to the lowest level since December, the Mortgage Bankers Association said today.
On an unadjusted basis, the Index fell 2.8 percent compared to the week prior and was down 3.7 percent compared to the same week last year.
The decline in apps was led by a 4.6 percent dip in the refinance index and a 1.0 percent decline in the purchase index.
Conversely, the Government Purchase Index (mostly FHA loans) increased 7.7 percent, while the Gov. Refinance Index jumped 11.4 percent.
The share of total applications that were for refinances fell to 49.7 percent, well below its near-75 percent share at the end of January.
Interest rates continued to play their up and down routine, this time showing great improvement from one week earlier.
The average 30-year fixed-rate mortgage fell to 5.98 percent from 6.37 percent a week earlier, the very same rate from two weeks ago.
The 15-year followed a similar pattern, falling to 5.24 percent from 5.72 percent, two basis points lower than its average rate two weeks ago.
Adjustable-rate mortgages were an entirely different story, with the average one-year ARM rising to 6.95 percent from 6.72 percent, up more than a single point from two weeks ago.
It’s no wonder the ARM share of mortgage applications plummeted to 7.9 percent from 15.5 percent a week earlier.
(photo: tanakawho)
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