Mortgage applications fell 2.4% for the week ending April 6, continuing a trend that started several weeks ago when rates began to rise, according to new figures compiled by the Mortgage Bankers Association.
The refinancing share of the market fell for the eighth consecutive week – a sign that purchases are beginning to climb, at least as a percentage of new business. Overall, refinancings fell to 70.5% of all new applications, down from 71.2% the week prior.
Over the past week rates have declined – along with the yield on the 10-year Treasury – sparking hopes that applications will begin to rise as the spring home buying season gets underway.
MBA also reported that the investor portion of the market is gaining strength as non-owner occupants file to refinance their existing loans. In March investor loans accounted for 8.3% of applications compared to 7.4% in February.
On average, mortgage bankers were charging 4.10% for a fixed rate 30-year conforming loan during the week, down from 4.16% the week before. Points charged remained flat at 43bps.
MBA measures origination activity through its proprietary index. The trade group tracks applications for second homes and investment properties separately, giving it the ability to distinguish between the two.
