The most recent Weekly Application Survey from the Mortgage Bankers Association showed that mortgage activity declined during the week ending February 24.
According to the report, mortgage application activity edged 0.3 percent lower, as rates continue to hover near all-time lows. However, it was found that the Purchase Index increased 8.2 percent from the previous week on a seasonally adjusted basis.
"Mortgage rates remained near survey lows last week, but refinance volume fell slightly," said MBA vice president of research and economics Michael Fratantoni. "According to survey participants, more than 20 percent of refinance applications were for HARP loans."
Even though a greater number of current borrowers capitalized on the Home Affordable Refinance Program, mortgage data indicated that the refinancing share of all mortgage application activity dipped from the previous week to 77.9 percent. This is the lowest the share has been since December 2, 2011.
Meanwhile, it was found that the average rate for a 30-year fixed-rate mortgage with a conforming loan balance fell to 4.07 percent from 4.09 percent the previous week. In addition, the rate for a 30-year FRM jumbo loan rose slightly to 4.34 percent.