Residential loan applications fell 0.3% for the week ending February 24 while refinancings continued to dominate the business, according to new figures compiled by the Mortgage Bankers Association.
The trade group, relying on its Market Composite Index, reported that refi applications fell to 77.9% of all new business from 80.1% the week prior. It was the lowest refi reading since early December.
ARM activity fell to 5% of total applications from 5.3% the week prior. Not surprisingly, consumers overwhelmingly are choosing fixed-rate instruments.
“Mortgage rates remained near survey lows last week, but refinance volume fell slightly,” said Michael Fratantoni, MBA's vice president of research.
“According to survey participants, more than 20% of refinance applications were for HARP loans. The HARP share of total refinance applications has increased over the past month.”
The trade group noted that although purchase applications rose slightly, they remain “anemic” compared to historical levels.
