The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. declined 5.6 per
cent in the week ended February 23, following a 10.6 per cent plunge the week before. Overall, this was the third straight weekly decrease in total
mortgage application volume.
According to
the MBA’s data, last week’s drop in mortgage applications reflected a 7.3 per cent slump in mortgage refinance
applications and a 4.5
per cent fall in mortgage applications to purchase a home.
The report also
revealed that the average fixed 30-year mortgage rate slipped
from 7.06 per cent to 7.04 per cent, recording its first decline in six weeks. Nonetheless, the rate remained about a quarter
percentage point higher than at the beginning of the year.
Commenting on
the latest survey results, Mike Fratantoni, MBA’s SVP and chief economist, noted higher rates in recent weeks had stalled
activity, and last week it dropped more for those seeking Federal Housing
Administration (FHA) and the U.S. Department of Veterans Affairs (VA) refinances.