Mortgage application activity was down a bit from last week, but remained at a noteworthy weekly and annual pace.
According to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA) for the week ending March 21, the Market Composite Index (a measure of mortgage loan application volume) decreased 2.0% from the previous week’s 6.2% decrease. On an unadjusted basis, the Index decreased 2% compared with the previous week.
“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, MBA’s vice president and deputy chief economist. “Additionally, VA purchase applications saw a modest increase over the week. Overall applications declined, however, as refinance applications were down 5% to its lowest level in a month.”
MBA’s Refinance Index decreased 5% from the previous week and was 63% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 7% higher than the same week one year ago.
Detailing that further, the refinance share of mortgage activity decreased to 40.4% of total applications from 42.0% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications, MBA reported.
The FHA share of total applications remained unchanged at 16.5% from the week prior and the VA share of total applications decreased to 14.5% from 14.6% the week prior.
Added Kan, “Markets remained focused on potential trade policy changes, while the Fed held the funds rate at its current level, resulting in the 30-year fixed rate averaging 6.71% last week.”
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