The Mortgage Bankers Association (MBA) announced on Wednesday that the
mortgage application volume in the U.S. jumped 3.0 percent in the week ended March
17, following a 6.5 percent climb the week before. That marked the third straight weekly advance in total
mortgage application volume.
According to the MBA’s data, last week’s increase in mortgage
applications reflected a 4.9 percent surge
in mortgage refinance applications and a 2.2 rise in mortgage applications to
purchase a home.
The report also revealed that the average fixed 30-year mortgage rate declined from 6.71
percent to 6.48 percent, the lowest level since the week ended February 10 (6.39
percent).
Commenting on the latest survey results, Joel Kan, MBA's vice president
and deputy chief economist, said that mortgage rates fell last week as Treasury
yields decreased, driven by uncertainty over the health of the banking sector
and worries about the broader impact on the economy. “However, mortgage rates
have not dropped as much as Treasury rates due to increased MBS market
volatility,” he noted, adding that “borrowers took the opportunity to act”, causing
increases in both purchase and refinance applications even though overall
application volume remains at relatively low levels.