And The February Mortgage App Decline Continues

All indication seems to point to a tough February for the mortgage market. Following a brief holiday reprieve, rates began the new year once again above 7 percent—and application interest has waned ever since.

According to the Mortgage Bankers Association, mortgage applications decreased 5.6 percent from one week earlier for the week ending February 23, 2024. The Refinance Index decreased 7 percent from the previous week and was 1 percent lower than the same week one year ago. 

“Mortgage rates were little changed last week, with the 30-year conforming rate declining slightly to 7.04 percent but remaining about a quarter percentage point higher than the start of the year,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Higher rates in recent weeks have stalled activity, and last week it dropped more for those seeking FHA and VA refinances. Purchase activity is running 12 percent behind last year’s pace, but our January Builder Application Survey results showed that applications to buy new homes were up 19 percent compared to last year. This disparity continues to highlight how the lack of existing inventory is the primary constraint to increases in purchase volume. However, mortgage rates above 7 percent sure don’t help.”

The refinance share of mortgage activity decreased to 31.2 percent of total applications from 32.6 percent the previous week.