Mortgage applications rise as rates fall for the first time in 3 months
For the week ending March 4, 2022, mortgage applications were up 8.5% from the previous week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey (MBA ).
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“Mortgage rates fell for the first time in 12 weeks as the war in Ukraine spurred a flight to quality by investors, pushing US Treasury yields lower,” said vice-president Joel Kan. -associate chairman of the MBA’s economic and industrial forecasts, in a press release. . “A 6 basis point decline in the 30-year fixed rate mortgage led to a slight rebound in total refinance activity, with a larger gain in government refinances. Going forward, the potential for higher inflation amid disruptions in oil and other commodity flows will likely lead to a period of rate volatility as these effects work against each other.
Additionally, the rollover index was up 9% from the previous week and was 50% lower than the same week a year ago, while the buy index was up 9% from the previous week. to the previous week, the MBA said in the statement.
The MBA added that the refinance share of mortgage activity fell to 49.5% of total applications from 49.9% the previous week, while the share of adjustable rate mortgage activity ( ARM) decreased to 5.2% of total requests.
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“Buying activity also increased as potential buyers acted on lower rates and the early start of the spring buying season. Average loan sizes remained near record highs, loan applications balances continuing to dominate growth,” Kan added in the statement.
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