Mortgage applications dropped 2.2 percent for the week, according to the Mortgage Bankers Association’s weekly mortgage applications survey released Wednesday.
For the week ending March 26, the Refinance Index decreased 3 percent from the previous week and was 32 percent lower than the same week in 2020. The Purchase Index dropped 1 percent for the week and was 39 percent higher than a year ago.
The refinance share of mortgage activity decreased to 60.6 percent of total applications from 60.9 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.4 percent of total applications.
“Many prospective homebuyers this spring are feeling the effects of higher rates and rapidly accelerating home prices,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Record-low inventory is pushing home-price growth at double the rate from a year ago, and even above the 10 percent growth rates seen in 2005. The housing market is in desperate need of more inventory to cool price growth and preserve affordability.”