Mortgage Applications Decline 2.4%

By Kyle Chezum Updated on 9/25/2013

For the week ending March 9th, mortgage applications filed in the U.S. fell by 2.4% mostly because of the decline in mortgage refinancing activity according to the MBA (Mortgage Bankers Association).

The seasonally adjusted index actually fell 4.1% which makes it the fourth consecutive weekly decline. On the flip side, home buying was on the rise and the index climbed 4.4%.  The reason for increased home loan applications was attributed to the stronger job market. Home Purchase applications are now 12% higher than levels seen in February, even after they have been adjusted for seasonality. However, this level of real estate purchase activity remains the same when compared to the numbers during the same period in 2011. Basically, the buying activity is still weak and remains in the same range since the First Time Homebuyer Tax Credit expired in 2010.

The HARP refinancing makes up 30% of the overall volume. Most of the HARP loans, per HARP 2 Guidelines have loan-to-value (LTV) ratios above 90%, which suggests the great news that underwater homeowners are now getting help through HARP.

The 30-year fixed-rate mortgage average was unchanged at 4.06% last week, while the 30-year jumbo loan rose from 4.33% to 4.39%. The 30-year FHA declined from 3.87% to 3.82%. Meanwhile, the 15-year fixed was still at 3.36%, and the 5/1 ARM .% rose from 2.78% to 2.81%.