The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. dropped 2.0 per
cent in the week ending March 21, following a 6.2 per cent decrease in the week before.
According to
the MBA’s data, last week’s decrease in mortgage applications reflected
a 5.3 per cent tumble in mortgage refinance applications that was partly offset by a 0.7 per cent increase
in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage slipped from 6.72 per cent
to 6.71 per cent.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that markets remained focused on potential trade policy
changes while the Federal Reserve held the funds rate at the current level. He also unveiled
that last week’s purchase activity was driven primarily by a 6 per cent
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.