Mortgage applications fell for the 3rd consecutive week amid an increasingly unpredictable rate environment. The Home Loan Bankers Association (MBA) reported a decrease of 10.4% on a seasonally adjusted basis for the week ending March 27.
The Refinance Index fell 17% from the previous week, but stays 33% greater than the same week one year back.
Purchase activity also declined, with the seasonally changed Purchase Index dropping 3%, just 1% above year-ago levels.
MBA’s Mike Fratantoni notes “higher rates are being offset somewhat by the purchaser’s market in many parts of the nation– there are more homes for sale than purchasers have actually seen in some time. Moreover, purchase applications for FHA and VA loans continue to hold up better than those for conventional buyers. However, the shocks of the jump in rates and the increase in overall economic unpredictability are likely having an influence on buyer confidence.”
As soon as once again, application activity shifted further away from refinances. The re-finance share of total applications reduced to 45.3% from 49.6% the prior week, while ARM share edged down to 8.0%. FHA share decreased a little to 19.5%, VA share increased to 16.1%, and USDA share held consistent at 0.5%.
Home Loan Rate Summary:
- 30yr Fixed: 6.57% (from 6.43%)|Points: 0.65 (the same)
- 15yr Repaired: 5.89% (from 5.83%)|Points: 0.75 (from 0.80)
- Jumbo 30yr: 6.59% (from 6.45%)|Points: 0.43 (from 0.56)
- FHA: 6.25% (from 6.15%)|Points: 0.81 (from 0.75)
- 5/1 ARM: 5.67% (from 5.75%)|Points: 0.56 (from 0.68)