Mortgage applications dropped for the second straight week as both purchase and refinance volume declined, according to data from the Mortgage Bankers Association.
The MBA's mortgage applications survey for the weekly period ending March 13 decreased 3.9% from
The refinance index fell 5% week over week accounting for 59% of total applications, which is the lowest level since October, the Washington-based trade group said. Meanwhile, the purchase gauge regressed 2% from the prior week.
Mortgage application volume declined even though interest rates dipped below the 4% mark. The average contract interest rate for 30-year fixed mortgages with conforming loan balances below $417,000 decreased two basis points, to 3.99%. Furthermore, jumbo loan balances higher than $417,000 saw an average 30-year fixed interest rate weaken by eight basis points, to 3.94%.
Additionally, 30-year fixed mortgages backed by the Federal Housing Administration had an average contract rate decline of six basis points, to 3.74%. Lastly, the average contract interest rate for 15-year fixed mortgages decreased one basis point, to 3.28%/
The MBA's survey covers over 75% of all U.S. retail residential mortgage applications/
