Following weeks on the decline, a number of mortgage and refinance rate options popped back up last week, which didn’t help application interest. According to the Mortgage Bankers Association’s latest weekly report, mortgage and refi apps slid for the week ending March 31.
Per the MBA, mortgage applications decreased 4.1 percent from one week earlier. Refinance apps were down 5 percent week-over-week.
“Spring has arrived, but the housing market is missing the customary burst in listings and purchase activity that typically mark the season. After four weeks of increasing purchase application activity, volume declined a bit this week even with another small drop in mortgage rates,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Additionally, refinance application volume continues to be quite low. Although the mortgage rate for conforming balance loans declined by five basis points over the week to 6.40 percent, the mortgage rate for jumbo loans increased by nine basis points to 6.36 percent.
“At the entry-level segment of the market, purchase applications for both FHA and VA loans decreased last week,” Fratantoni continued. “We do expect strong demand from first-time homebuyers over the next several years given the large number of millennials hitting peak first-time homebuyer age, but affordability remains a real challenge in this environment.”