The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. slipped 0.7 per
cent in the week ended March 22, following a 1.6 per cent drop the week before. According to
the MBA’s data, last week’s decline in mortgage applications reflected a 1.6 per cent fall in mortgage refinance
applications and a 0.2 per cent decrease in mortgage applications to purchase a
home.
The report also
showed that the average fixed 30-year mortgage rate fell
from 6.97 per cent to 6.93 per cent.
Commenting on
the latest survey results, Joel Kan, MBA’s vice
president and deputy chief economist, noted that mortgage application activity
was muted last week as a slight decrease in mortgage rates was not enough to
stimulate borrower demand. “Purchase applications were essentially unchanged,
as homebuyers continue to hold out for lower mortgage rates and for more
listings to hit the market,” he added. “Lower rates should help to free up
additional inventory as the lock-in effect is reduced, but we expect that will
only take place gradually, as we forecast that rates will move toward 6% by the
end of the year. Similarly, with rates remaining elevated, there is very little
incentive right now for rate/term refinances.”