After a couple of weeks of declines, mortgage applications are on the rise again.
Applications increased 6.5% for the week ending March 10 from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Purchase applications increased for the second straight week but remained almost 40% below last year’s pace. Refinances were up slightly, but still more than 70% below last year’s pace.
“Treasury yields declined late last week, as market concerns over bank closures and the potential for broader ripple effects triggered a flight to safety in Treasury bonds. This decline pushed mortgage rates for all loan types lower, with the 30-year fixed rate decreasing to 6.71%,” said Joel Kan, MBA’s vice president and deputy chief economist. “While lower rates should buoy housing demand, the financial market volatility may cause buyers to pause their decisions.”
The survey showed:
- The Market Composite Index, a measure of mortgage loan application volume, increased 6.5% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index increased 7%.
- The Refinance Index increased 5% from the previous week and was 74% lower than the same week one year ago.
- The seasonally adjusted Purchase Index increased 7% from one week earlier.
- The unadjusted Purchase Index increased 8% compared with the previous week and was 38% lower than the same week one year ago.
- The refinance share of mortgage activity decreased to 28.2% of total applications from 28.9% the previous week.
- The adjustable-rate mortgage (ARM) share of activity decreased to 8.5% of total applications.