Mortgage applications slid 2.5 percent in the latest Mortgage Bankers Association’s Weekly Mortgage Applications Survey released Wednesday.
The survey found that the Refinance Index decreased 5 percent for the week ending March 19 from the previous week and was 13 percent lower than the same week one year ago. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 26 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 60.9 percent of total applications from 62.9 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.2 percent of total applications.
“The 30-year fixed mortgage rate increased to 3.36 percent last week and has now risen 50 basis points since the beginning of the year, in turn shutting off refinance incentives for many borrowers. Refinance activity dropped to its slowest pace since September 2020, with declines in both conventional and government applications. Mortgage rates have moved higher in tandem with Treasury yields, as the outlook for the U.S. economy continues to improve amidst the faster vaccine rollout and states easing pandemic-related restrictions,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.