The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. decreased 6.2 per
cent in the week ending March 14, following an 11.2 per cent jump in the week before. That marked the first weekly drop in mortgage applications in
three weeks, the pace of which was also the steepest since mid-February.
According to
the MBA’s data, last week’s fall in mortgage applications was due to a 12.8 per cent plunge in mortgage
refinance applications. Meanwhile, mortgage
applications to purchase a home inched up 0.1 per cent.
The report also
revealed that the average fixed 30-year mortgage increased from 6.67 per cent
to 6.72 per cent, recording its first gain in nine weeks.
Commenting on
the latest survey results, Mike Fratantoni, MBA’s SVP and chief economist, noted purchase application volume inched up to its highest level in six weeks,
led by a 3 per cent increase in Federal Housing Administration (FHA) purchase
applications. “Growing inventories of homes on the market and steadier mortgage
rates are supporting homebuying activity thus far this spring,” he added.