Mortgage Applications Slip in the Week Ending March 22nd

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, March 22nd, the Market Composite Index—a measure of mortgage loan application volume—declined 0.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 0.4% compared with the previous week.

The Refinance Index declined 2.0% from one week ago and was 9.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 0.2% compared with one week ago. The unadjusted Purchase Index increased 0.2% compared with the previous week but was 16.0% lower than the same week one year ago.

Adding his analysis to the results of this week’s survey, MBA Vice President and Deputy Economist Joel Kan said:

“Mortgage application activity was muted last week despite slightly lower mortgage rates. The 30-year fixed rate edged lower to 6.93%, but that 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. 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.”