After nearly a month of promising increases, mortgage applications fell again last week.
New data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 27 showed that applications were down 9% from the prior week.
“Overall application activity declined last week despite lower rates, which is an indication of the still volatile time of the year for housing activity,” said Joel Kan, MBA vice president and deputy chief economist. “Purchase activity is expected to pick up as the spring homebuying season gets underway, bolstered by lower rates and moderating home-price growth. Both trends will help some buyers regain purchasing power.”
The data showed that:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6%.
- The Refinance Index decreased 7% from the previous week and was 80% lower than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 10% from one week earlier.
- The unadjusted Purchase Index increased 7% from the previous week and was 41% lower than the same week one year ago.
- Refinances were down to 31.2% of total applications from 31.9% the previous week.
- ARM share of activity increased to 6.7% of total applications.