Mortgage application volume seems to have peaked, despite the record low interest rates currently on offer, which also appear to have bottomed.
Home loan apps increased just three percent on a seasonally adjusted basis for the week ending March 27 after surging a week earlier, the MBA reported today.
On an unadjusted basis, the index was up 2.9 percent compared to one week earlier and 68.8 percent compared to the same period a year ago.
The refinance index increased 3.7 percent, while purchase activity inched slightly higher and FHA loan apps slipped 1.4 percent (purchases still soft despite record price declines and record low interest rates).
Refinances continue to dominate mortgage activity, accounting for 79.1 percent of total applications last week, up from 78.5 percent the previous week.
How many are actually getting approved is another story, as I’m sure applicants are simply throwing ‘em against the wall to see what sticks, even though they probably no they’ve got no chance.
Interest rates also seem to be at or near their bottom, with the 30-year fixed averaging 4.61 percent last week, down just two basis points from the prior week (as good as it gets folks).
The 15-year fixed slipped three basis points to 4.45 percent and the one-year ARM averaged 6.20 percent, down from 6.22 percent a week earlier.
The MBA’s weekly survey covers roughly half of all retail residential home loan applications, but doesn’t differentiate multiple or declined apps, which have without doubt risen in recent months thanks to stiffer underwriting guidelines and equity (lack of) issues.
(photo: stevelyon)
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