In the wake of a decline of refinance and purchase requests during the week ending April 6, there was a significant drop in overall mortgage application activity.
Mortgage applications fell 2.4 percent during the week, even though the level of home affordability continues to hover near an all-time high, according to the Mortgage Bankers Association. It's believed the overall decline was a result of fewer current homeowners submitting refinance requests.
The report found that refinancing activity dipped 3.2 percent from the previous week to an overall share of 70.5 percent of applications. This marked the eighth consecutive week that these requests have trended lower.
As a result of a drop in application activity, the average rate for a 30-year fixed-rate mortgage with a conforming loan limit fell to 4.1 percent from 4.16 percent the previous week. Meanwhile, the rate for a 30-year FRM jumbo loan also declined, falling to 3.87 percent. The previous week this rate was at 3.89 percent.
As fewer refinance request come down the pipeline, it could be an indicator that a greater number of households are finding financial safety and soundness in recent economic improvements.