So it begins.
Mortgage applications dropped 29.4 percent last week from a week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. MBA’s refinance index dropped 34 percent for the week, though was still 195 percent higher than the same week a year earlier.
“Looking ahead, this week’s additional actions taken by the Federal Reserve to restore liquidity and stabilize the mortgage-backed securities market could put downward pressure on mortgage rates, allowing more homeowners the opportunity to refinance,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting.
The seasonally adjusted Purchase Index also dropped 15 percent last week. The refinance share of mortgage activity decreased to 69.3 percent of total applications from 74.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent of total applications.
The coronavirus pandemic is already having an impact on purchases, as states at the center of the outbreak have seen significant drops in purchase applications:
- California applications climbed 3 percent the week ending March 13, but dropped 23 percent last week.
- New York applications dropped 24 percent two weeks ago and another 35 percent last week.
- Washington state applications fell 3 percen two weeks ago and 17 percent last week.
The refinance share of mortgage activity decreased to 69.3 percent of total applications from 74.5 percent the previous week. The adjustable-rate mortgage share of activity fell to 6.1 percent of total applications.
See the full report here.