Recent Trends in Mortgage Applications

The latest data from the Mortgage Bankers Association (MBA) reveals a slight downturn in mortgage applications across the United States. Specifically, there was a 1.6% decrease in the week ending March 29 compared to the previous week. This shift comes alongside a minor adjustment in interest rates, with the average contract interest rate for 30-year fixed-rate mortgages experiencing a 0.01 percentage point decline, settling at 6.7%.

Diverging Paths: Purchase vs. Refinance

Interestingly, the purchase index saw an uptick of 2%, reaching 158.2, suggesting a growing interest in home buying. Conversely, the refinance index took a 6% hit, dropping to 710.4. This divergence highlights varying consumer behaviors in the current economic climate.

Expert Insights on the Housing Market

"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 Joel Kan, MBA Deputy Chief Economist. This statement underscores the resilience of the housing market amidst fluctuating conditions.