The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. soared 9.7 per cent
in the week ended March, following a 9.7 per cent decline the week before. This marked the first gain in total
mortgage application volume in four weeks.
According to
the MBA’s data, last week’s rebound in mortgage applications reflected a 10.6 per cent jump in mortgage applications to
purchase a home and an 8.1 per cent climb in mortgage refinance applications.
The report also
revealed that the average fixed 30-year mortgage rate slipped
from 7.04 per cent to 7.02 per cent, the lowest level in three weeks.
Commenting on
the latest survey results, Mike Fratantoni, MBA’s SVP and chief economist, noted that mortgage applications were up considerably
relative to the prior week, which included the President’s Day holiday. “Of
note, purchase volume - particularly for FHA loans - was up strongly, again
showing how sensitive the first-time homebuyer segment is to relatively small
changes in the direction of rates,” he added. “Other sources of housing data
are showing increases in new listings, which is a real positive for the spring
buying season given the lack of for-sale inventory.”