Mortgage App Volumes Down Another 1.2%

Last week saw another tumble in mortgage applications despite a slight fallback in interest rates, according to weekly data from the Mortgage Bankers Association (MBA).

MBA’s Market Composite Index, a measure of loan application volume, fell 1.2 percent on a seasonally adjusted basis for the week ending March 14. On an unadjusted basis, the index dropped 1 percent compared to the previous week.

In refinances, volume was down 1 percent week-over-week, representing 56.5 percent of total application numbers, a decline from 57 percent. It was the sixth straight week in which the refinance share of mortgage activity fell, MBA reported.

The seasonally adjusted Purchase Index was also down, decreasing 1 percent week-over-week. Unadjusted, the index was flat compared to the previous week but down 15 percent against the same week last year.

With refinance numbers fizzling, market watchers have been anxiously waiting for purchase loans to fill the growing gap in the market, an occurrence that has yet to happen—leaving applications down by more than half year-on-year.

In other news, the MBA’s measure for the average 30-year fixed rate fell slightly to 4.50 percent last week, with points decreasing to 0.26 (including the origination fee) for 80 percent loan-to-value loans. The group’s metric stands in contrast with other interest rate reports for the week, which showed average rates climbing following the government’s report on February job numbers.