Mortgage applications decreased 2.0% during the week ending March 21, when compared to the previous week, according to data from the Mortgage Bankers Association (MBA).

The association’s market composite index, a measure of mortgage loan application volume, was down 2.0% on a seasonally adjusted basis. Refinancing decreased 5% from the previous week but was still 63% higher than the same week one year ago. The MBA’s purchase index increased 1.0% compared to the previous week and was 7.0% higher than the same week one year ago.

The refinancing share of total mortgage applications for the week decreased to 40.4% from 42.0% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3%. Federal Housing Administration (FHA) loan applications accounted for 16.5% of the total, the same as the previous week. The Veterans Administration share of loan applications decreased to 14.5%, down slightly from 14.6% the prior week.

The average interest rate on a 30-year fixed-rate mortgage with conforming loan balances ($806,500 or less) fell slightly to 6.71% from the previous week’s rate of 6.72%. FHA loan interest rates remained unchanged at 6.40%. The average interest rate for 15-year fixed-rate mortgages remained unchanged at 6.08%, and the average 5/1 ARM rate was 5.89%, up from the previous week’s 5.84% rate.

“Purchase applications saw the strongest weekly pace in almost two months and were 7% higher than a year ago. Last week’s purchase activity was driven primarily by a 6% 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,” said Joel Kan, the MBA’s vice president and deputy chief economist, in a press release.

Kan also said that markets remained focused on potential trade policy changes, while the Federal Reserve held the benchmark federal funds rate at its current level, resulting in 30-year fixed-rate mortgages averaging 6.71% last week.