Mortgage Applications See a Minor Decline

In the week ending March 29, mortgage applications in the United States experienced a slight decrease of 1.6%, according to the latest survey from the Mortgage Bankers Association (MBA). Despite this dip, there's a silver lining as the purchase index saw a 2% increase, reaching 158.2, indicating a resilient housing market.

Interest Rates and Refinance Activity

The average contract interest rate for 30-year fixed-rate mortgages edged down by 0.01 percentage points to 6.7%. However, the refinance index wasn't as fortunate, dropping by 6% to 710.4, reflecting a shift in homeowner priorities.

A Positive Outlook from the MBA

"Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook," remarked MBA Deputy Chief Economist Joel Kan. This statement underscores the complex dynamics at play in the current housing market.