As fewer borrowers capitalized on affordable mortgage rates to purchase homes and refinance, overall loan activity declined during the week ending April 20, the Mortgage Bankers Association reports.
According to the industry group's Weekly Application Survey, mortgage requests declined 3.8 percent from a week earlier. Specifically, the report noted that the refinancing share of activity dipped 5.6 percent to 73.4 percent of all requests. A week earlier, this share was recorded at 75.2 percent.
"Within refinance applications taken in March 2012, 58.8 percent were for fixed-rate 30-year loans, 23.1 percent for 15-year fixed loans and 5.2 percent for ARMs," the MBA said. "The share of refinance applications for other fixed-rate mortgages with amortization schedules other than 15 and 30-year terms was 12.8 percent of all refinance applications."
As a result, mortgage records indicate that the average interest rate from a 30-year fixed-rate mortgage with a conforming loan limit edged lower to 4.04 percent from 4.05 percent a week earlier. In addition, the rate for a 30-year FRM jumbo loan fell from 4.36 percent to 4.27 percent, making the prospect of owning a home more affordable for potential buyers.