Mortgage applications fell 1.6% last week, according to a weekly survey from the Mortgage Bankers Association (MBA). It marked a slightly smaller decline than the prior week ending March 21, when applications decreased 2.0% week over week.
The MBA noted in a press release that economic uncertainty was partially offset by an increase in the inventory of existing homes for sale.
“Treasury yields continue to be volatile as economic uncertainty dominates markets,” said Joel Kan, the MBA’s vice president and deputy chief economist. “Last week’s level of purchase applications was its highest since the end of January, driven by a 3% increase in conventional purchases, while government purchase applications were down 2%.”
The MBA’s market composite index, which measures mortgage loan application volume, was down 1.6% on a seasonally adjusted basis from the previous week. The refinancing share of mortgage applications decreased to 38.6% from 40.4% the prior week, while the adjustable-rate mortgage (ARM) portion of total applications increased to 6.5% from 6.3%.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances — defined as $806,500 or less — inched lower to 6.70% from 6.71% the prior week. The average rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) also fell by one basis point to 6.76%.
Fixed-rate mortgages with a 15-year term averaged 6.04% last week, a slight drop from the 6.08% average for the week ending March 21. The average interest rate for 5/1 ARMs increased to 6.04% from 5.89%.
Kan observed that overall mortgage activity was weighed down by a decline in refinancing.
“Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook,” Kan stated. “Refinance applications were down almost 6% last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.”
