The Mortgage
Bankers Association (MBA) announced Wednesday that the mortgage application volume in the U.S. climbed 7.1 per
cent in the week ended March 8, following a 9.7 per cent surge the week before.
According to
the MBA’s data, last week’s jump in mortgage applications reflected a 12.2 per cent soar in mortgage refinance
applications and a 4.7 per cent increase in mortgage applications to purchase a
home.
The report also
revealed that the average fixed 30-year mortgage rate fell
from 7.02 per cent to 6.84 per cent, the lowest level in five weeks.
Commenting on
the latest survey results, Mike Fratantoni, MBA’s SVP and chief economist, said that mortgage rates dropped below 7% last week
for most loan types because of incoming economic data showing a weaker service
sector and a less robust job market, with an increase in the unemployment rate
and downward revisions to job growth in prior months. He, however, noted that,
while the percentage increases in purchase application volume and refinance
volume were large, the level of refinance activity remained quite low, with
most of this activity likely reflecting borrowers who took out a loan at or
near the peak of rates in the past two years.