The number of mortgage applications for the week ending March 29 declined 4% on a seasonally adjusted basis compared to the prior week's data, according to a report released today.
The overall decline was primarily due to a 6% drop in the refinance index, according to the latest Market Composite Index survey compiled by the Mortgage Bankers Association (MBA). Refinancing accounted for 74% of all mortgage applications, down from the prior week's 75%.
The drop in refinance mortgage applications was partially offset by a 1% seasonally adjusted improvement in purchase applications. The number of purchase applications for government loans jumped nearly 7%, and was "likely driven by borrowers applying for loans prior to the scheduled increase in FHA [Federal Housing Administration] premiums that took effect on April 1," according to Mike Fratantoni, vice president of research and economics at MBA.
Rates for 30-year fixed mortgages backed by the FHA, 30-year fixed conventional, and 30-year jumbo fixed mortgages (loan balances of $417,500 or greater), all declined versus the previous week. Of the mortgage types tracked by the MBA survey, 5/1 adjustable-rate mortgages (ARMs) saw the only weekly increase in average rate, rising two basis points to 2.60%.
The weekly mortgage survey consists of more than 75% of all U.S. retail mortgage applications, and has been conducted since 1990.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
What We Know About the Samsung Galaxy S9
A recent leak tells us nearly everything we want to know about Samsung's upcoming flagship.
3 High-Yield Stocks With Virtual Monopolies
These companies have near-monopolies (or real monopolies in some cases) that generate significant cash flows. But are they enough to make them worth investing in?
Is Corning Incorporated (GLW) a Buy?
Corning investors had plenty of reasons to celebrate in 2017, but is the glass still half full for investors?