WASHINGTON—Purchase applications increased, refi apps decreased, and overall mortgage applications decreased 6.2% from one week earlier, according to the latest data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 14. 

On an adjusted basis, the Market Composite Index decreased 6% compared with the previous week, while the Refinance Index decreased 13% from the previous week and was 70% higher than the same week one year ago, the MBA said.

In addition, the MBA said seasonally adjusted Purchase Index increased 0.1% from one week earlier, while the unadjusted Purchase Index increased 1% compared with the previous week and was 6% higher than the same week one year ago.

Growing Inventories

“Mortgage rates increased for the first time in nine weeks, with the 30-year fixed rate rising to 6.72%. This increase in rates led to a decrease in refinance volume. However, purchase application volume inched up to its highest level in six weeks, led by a 3% increase in FHA purchase applications,” Mike Fratantoni, MBA’s SVP and chief economist, said in a statement. “Overall, purchase application volume is up 6% compared to last year at this time. Growing inventories of homes on the market and steadier mortgage rates are supporting homebuying activity thus far this spring.”

Other Findings

According to the MBA:

• The refinance share of mortgage activity decreased to 42.0% of total applications from 45.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.7% of total applications.
• The FHA share of total applications increased to 16.5% from 16.1% the week prior. The VA share of total applications decreased to 14.6% from 15.9% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.
• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.72% from 6.67%, with points increasing to 0.64 from 0.63 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.78% from 6.68%, with points decreasing to 0.38 from 0.48 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.  
• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.40% from 6.34%, with points decreasing to 0.72 from 0.74 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 15-year fixed-rate mortgages increased to 6.08% from 6.04%, with points decreasing to 0.59 from 0.68 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 5/1 ARMs increased to 5.84% from 5.81%, with points decreasing to 0.38 from 0.72 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.