Mortgage applications

While purchase volume is seeing its usual seasonal pickup, lower rates caused a spike in activity among existing homeowners looking to refinance.

And with demand far outweighing supply, the average new-home purchase loan ascended to another record high.

But the percentage of weekly applications in that category was closer to 60%, the Mortgage Bankers Association found.

Mortgage rates that are rising in tandem with a recovering economy dampened borrower activity, even with prime homebuying season underway.

While there were fewer new mortgages sought on a week-to-week basis, the index was higher than it has been during the same week in the last two years.

Despite a 3% increase in new mortgages, overall applications dropped 2% on a consecutive-week basis due to a 5% decline in refis, according to the Mortgage Bankers Association.

While the economic recovery and stimulus checks drove upward movement in purchases, it wasn’t enough to offset tumbling refinance activity.

“Builders continue to be confronted with rising input costs and a lack of available lots, causing them to slow production,” MBA’s Joel Kan said.

Severe winter weather and another hike in mortgage rates stifled loan volume for the week, according to the Mortgage Bankers Association.

But the average amount for a purchase loan increased to an all-time high, showing the upper end of the housing market remains strong.