Mortgage applications have been considerably inconsistent when it comes to increasing and decreasing on a week-over-week basis, and a new report from the Mortgage Bankers Association revealed that activity fell 3.8 percent the final week of February.
According to the most recent Weekly Mortgage Applications Survey for the week ending February 27, the Market Composite Index was down 3.8 percent on a seasonally adjusted basis and decreased 3 percent when measure on an unadjusted basis.
Of all applications, refinancing accounted for 77 percent of activity, matching the level recorded the week before. However, the Refinance Index dropped 3 percent from the previous week. A slip in activity could be due to rising mortgage rates that make refinancing less desirable, however fixed rates remain considerably lower than those from this time a year ago.
When looking at applications for those buying, whether it be first-time buyers or investors, the seasonally adjusted Purchase Index fell 5 percent from one week earlier and was down 2 percent on an unadjusted measurement. When comparing the most recent PI to real estate records from this time last year, it was 14 percent higher, as interest in homeownership remains high despite lower application totals.