Mortgage applications dropped again, falling 3.3% from one week earlier as the market heads into the spring season, the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending March 18 found.
Both the refinance and purchase index dropped from last week, decreasing 5% and 1%, respectively.
The refinance share of mortgage activity continued its downward trend and fell to 53.9% of total applications from 55% the previous week. The adjustable-rate mortgage share of activity stayed frozen at 4.9% of total applications.
The FHA share of total applications slightly grew to 11.8% from 11.7% the week prior, as the VA share of total applications ticked up from 12.3% to 12.6%. The USDA share of total applications marginally increased to 0.9% from 0.8% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) dropped from 3.94% last week to 3.93% this week.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) fell to 3.85% from 3.86%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA dipped to 3.74% from 3.77%.
The average contract interest rate for 15-year fixed-rate mortgages declined to 3.18%, down from 3.22%, while the average contract interest rate for 5/1 ARMs decreased to 3.13%, down from 3.23%.