US Mortgage Applications Decline in the Week Ending March 21

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, March 21, the Market Composite Index—a measure of mortgage loan application volume—decreased 2.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2.0% compared with the previous week.

The Refinance Index decreased 5.0% from the previous week but was 63.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 1.0% from one week earlier. The unadjusted Purchase Index increased 1.0% percent compared with the previous week and was 7.0% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Purchase applications saw the strongest weekly pace in almost two months and were 7% higher than a year ago. Last week’s purchase activity was driven primarily by a 6% 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. Additionally, VA purchase applications saw a modest increase over the week. Overall applications declined, however, as refinance applications were down 5% to its lowest level in a month.

Markets remained focused on potential trade policy changes, while the Fed held the funds rate its current level, resulting in the 30-year fixed rate averaging 6.71% last week.”