US Mortgage Applications See a Notable Decline

In a recent development, mortgage applications in the United States have witnessed a significant decrease of 6.2% for the week ending March 14. This information comes from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, which was released on Wednesday.

Interest Rates on the Rise

Adding to the concerns of potential homebuyers, the average contract interest rate for 30-year fixed-rate mortgages has increased from 6.67% to 6.72% in the past week.

Insights from the MBA Chief Economist

"Despite the overall decline, there's a silver lining as purchase application volume has slightly increased, reaching its highest level in six weeks. This uptick is primarily driven by a 3 percent rise in FHA purchase applications," stated Mike Fratantoni, MBA's Chief Economist. He further added, "The growing inventories of homes on the market, coupled with steadier mortgage rates, are providing a supportive environment for homebuying activities this spring."