WASHINGTON–At the same time some lenders are reporting a booming first quarter (see related story), mortgage applications decreased 1.6% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 28. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.6% on a seasonally adjusted basis from one week earlier, MBA reported. 

It also reported:

• On an unadjusted basis, the Index decreased 1% compared with the previous week. The Refinance Index decreased 6% from the previous week and was 57% higher than the same week one year ago. 
• The seasonally adjusted Purchase Index increased 2% from one week earlier.
• The unadjusted Purchase Index increased 2% compared with the previous week and was 9% higher than the same week one year ago.

‘Economic Uncertainty’

“Treasury yields continue to be volatile as economic uncertainty dominates markets,” Joel Kan, MBA’s VP/deputy chief economist, said in a statement. “Most mortgage rates finished last week lower, with the 30-year fixed essentially unchanged at 6.70%. Last week’s level of purchase applications was its highest since the end of January, driven by a 3% increase in conventional purchases, while government purchase applications were down 2%. 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. Refinance applications were down almost 6% last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.”

Refi Share Slides

In addition, the MBA reported:

• The refinance share of mortgage activity decreased to 38.6% of total applications from 40.4% the previous week. 
• The adjustable-rate mortgage (ARM) share of activity increased to 6.5% of total applications.
• The FHA share of total applications decreased to 15.8% from 16.5% the week prior. 
• The VA share of total applications decreased to 14.4% from 14.5% the week prior. 
• The USDA share of total applications decreased to 0.5% from 0.6% the week prior.

Rate Averages

The MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.70% from 6.71%, with points increasing to 0.62 from 0.60 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.76% from 6.77%, with points decreasing to 0.49 from 0.50 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week., the MBA said. 

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.37% from 6.40%, with points increasing to 0.81 from 0.74 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.04% from 6.08%, with points decreasing to 0.61 from 0.67 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs increased to 6.04% from 5.89%, with points decreasing to 0.57 from 0.59 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.