Mortgage Applications Dropped in Week Ending March 2

By Kyle Chezum Updated on 9/25/2013

Applications for home mortgages declined 1.2% last week (week ending March 2, 2012) mostly because the refinancing activity slowed down. The refinance index which is a component of the overall index actually decreased 2% from the previous week. The index rose 10.2% on an unadjusted basis.
 
The home purchase index on the other hand, which obviously tracks home purchase applications, rose 2.1% from the previous week. The unadjusted purchase index increased 14.7% from the prior week but was actually 7.8% lower than the 2011 levels.
 
These numbers actually took into account an adjustment for President's Day Holiday. The refinance component of mortgage activity dropped to 77% of overall mortgage applications.  Since the rates have dropped this was actually the lowest rate since December and down from 77.9% the prior week. Every one is hoping that the HARP II Mortgage Refinance Program will breathe some life back into the refinancing activity.
  
In February 2012, investment homes made up 6.1% of home purchase applications, compared to 6.4% in January.
 
The average mortgage interest rate for the 30-year fixed rate mortgage with conforming balances of $417,500 or less dropped to 4.06%.  This was actually down from 4.07%. The rate for 30-year jumbo loans also dropped to 4.33% from 4.34%.
 
FHA 30 year fixed increased to 3.87%, while the 15-year, FRM remained unchanged at 3.36% and the hybrid 5/1 ARMs remained unchanged at 2.78%.