US Mortgage Applications See a 2% Decline

Recent data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey reveals a 2% drop in mortgage applications across the United States for the week ending March 21.

Interest Rates and Market Dynamics

The survey highlighted a slight decrease in the average contract interest rate for 30-year fixed-rate mortgages, moving from 6.72% to 6.71%. Meanwhile, the seasonally adjusted Purchase Index saw a modest 1% increase to 155.8, contrasting with a 5% fall in the Refinance Index to 752.4.

Expert Insights

"The recent uptick in purchase activity is largely attributed to a 6% surge in FHA applications. This trend suggests that the easing housing inventory and gradually declining mortgage rates are creating more opportunities for buyers," explained Joel Kan, MBA Deputy Chief Economist.