Mortgage applications decreased 6.2% on a seasonally adjusted basis for the week ending March 14, according to a survey by the Mortgage Bankers Association (MBA). Refinances decreased 13% from the prior week.
The number of people applying for mortgages had been on a strong upswing for several weeks with the prior two surveys showing double-digit gains in applications. Rates leveled off last week, leading to the lackluster showing.
There were bright spots in the survey, however. Refinances are still up 70% from a year ago and purchase applications increased 0.1% on a seasonally adjusted based and 1% on an unadjusted basis.
“Overall, purchase application volume is up 6% compared to last year at this time,” said Mike Fratantoni, MBA’s senior vice president and chief economist, in a statement. “Growing inventories of homes on the market and steadier mortgage rates are supporting homebuying activity thus far this spring.”
The share of refinances dropped to 42% of total applications from 45.6% the previous week. The adjustable-rate mortgage share decreased to 6.7% of total applications.
The Federal Housing Administration share of total applications increased to 16.5% from 16.1% the week prior. The U.S. Department of Veterans Affairs share of total applications decreased to 14.6% from 15.9% the week prior. The U.S. Department of Agriculture share of total applications remained unchanged at 0.4%.
