The never ending refinancing boom appears to be slowing with applications continuing to fall -- but not by much.
According to new figures compiled by the Mortgage Bankers Association, applications fell 2.4% for the week ending March 9 with refis accounting for 75.1% of new business, compared to 77% the week prior.
The trade group's measurement is seasonally adjusted and sequential in nature.
MBA is stressing that although total applications are down, purchase requests are rising – up 12% in a month. "Applications for home purchase increased again last week, coinciding with another strong job market report,” said Michael Fratantoni, MBA vice president for research and economics.
But the trade group tempered its optimism somewhat, noting that “this level of purchase activity, adjusted or unadjusted, was essentially unchanged when compared to the same time last year. Purchase activity remains subdued and within the narrow range we have seen since the expiration of the homebuyer tax credit in 2010.”
Meanwhile, early Wednesday morning the yield on the benchmark 10-year Treasury rose to 2.178%, the highest reading in almost a year. In general, the 10-year sets the pace for mortgage rates, which means retailers and wholesalers are now adjusting their pricing.
For the week ending March 9, the average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances ($417,500 or less) was unchanged at 4.06% with points decreasing to 0.43 from 0.50 the week prior. The measurement reflects loans with LTVs of at least 80%.
