Mortgage demand fell for the first time in fives week with total demand for applications falling 4.1% last week, according to the weekly data from the Mortgage Bankers Association.
- The Purchase Index fell 4.0% from one week earlier and is now down 35% when compared to the same week one year ago.
- The Refinance Index fell 5.0% from the previous week and is now 59% lower than the same week one year ago.
Analysis. Mike Fratantoni, MBA’s SVP and Chief Economist, said the lack of housing inventory is impacting the demand side of the balance sheet. “Spring has arrived, but the housing market is missing the customary burst in listings and purchase activity that typically mark the season. After four weeks of increasing purchase application activity, volume declined a bit this week even with another small drop in mortgage rates,”
Rates. Mortgage rates fell for the fourth straight week with the average contract interest rate for 30-year fixed-rate mortgages falling to 6.40%, down 5 basis points from last week and now down 36 basis points in March. Rates are now 150 basis points higher than one year ago.
- The average contract interest rate for 15-year fixed-rate mortgages actually increased 11 basis points to 5.97%.