Mortgage Apps: Another modest decline as Refis slow over last month

Bottom Line: Mortgage activity fell modestly in the latest week. Mortgage rates declined slightly on the week but were still around the October lows when 30 year conforming balance mortgage rates hovered below 4.00%. Home buying declined slightly while refinancing activity fell for the 7th time in the last 13 weeks. The MBA Mortgage Applications Index FELL by 3.3% during the week ended March 18 to 465.2, still slightly above its 13 week average of 459.7 and 6.4% ABOVE its year ago level. On a longer term basis, mortgage applications rose from early 2011 until May 2013 when the trend topped out and began a steady retreat. However, the declining trend bottomed in December 2014, turned sharply higher in early 2015 but then the trend shifted lower and is now up modestly. The Purchase Index FELL by 1.0% to 224.0, still slightly above its 13 week average of 221.5 and 25.3% ABOVE its year ago level. The level of purchase activity had stayed quite low, amid moderate volatility, since May 2010 but is now turning moderately higher. The Refinance Index FELL by 4.9% to 1,845. Despite this decline, refinancing activity is slightly above its 13 week average of 1,834 but 4.5% BELOW its year ago level. Contract Mortgage Rates FELL with the 30-year fixed rate dipping by 1 bp to 3.93% and with the 15-year fixed rate declining by 4 bps to 3.18%.