The volume of mortgage application activity for both refinancing and purchasing fell again last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, decreased 5.7 percent on a seasonally adjusted basis during the week ended February 24 and was 4 percent lower on an unadjusted basis. The Refinance Index was down 6 percent compared to the previous week and was 74 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 31.8 percent of total applications from 32.5 percent during the prior period. [refiappschart] The seasonally adjusted Purchase Index also suffered a 6 percent loss. The unadjusted version was down 3 percent week-over-week and 44 percent below its pace in the same week of 2022. [purchaseappschart] MBA spokesperson Joel Kan, vice president and chief economist, said, “The 30-year fixed rate increased to 6.71 percent last week, the highest rate since November 2022, which drove a 6 percent drop in applications. After a brief revival in application activity in January when mortgage rates dropped down to 6.2 percent, there has now been three straight weeks of declines in applications as mortgage rates have jumped 50 basis points over the past month. “Data on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to put upward pressure on rates.”
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