Mortgage application volume shrank 0.6% during the week ended March 29, as the average rate for a 30-year fixed-rate mortgage dipped to 6.91%, down slightly from 6.93% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 2% compared with the previous week and were down 5% compared with the same week one year ago.
Applications for purchases decreased 0.1% compared with the previous week and were down 13% compared with the same week one year ago.
“Mortgage rates moved lower last week, but that did little to ignite overall mortgage application activity,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The 30-year fixed mortgage rate declined slightly to 6.91 percent, while the 15-year fixed rate decreased to its lowest level in two months at 6.35 percent.
“Elevated mortgage rates continued to weigh down on home buying,” Kan adds. “Purchase applications were unchanged overall, although FHA purchases did pick up slightly over the week. Refinance applications decreased to fall 5 percent below last year’s pace.”
The refinance share of mortgage activity decreased to 30.3% of total applications, down from 30.8% the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 7.0% of total applications.
Photo: Romain Dancre