Mortgage applications fell for the fourth week in a row according to the Mortgage Bankers Association weekly survey. (MBA)
- Overalls applications fell 2.2% for the week continuing to be driven by a drop in those looking to refi.
- The Refinance Index fell 3% from the previous week and was down 32% from the same week one year ago.
- The Purchase Index fell 2% from the previous week but was up 39% from the same week one year ago.
Interestingly enough, MBA actually showed a decrease in mortgage rates for the week
- 30-YR Fixed: Fell to 3.33% with points decreasing to 0.39.
- 15-YR Fixed: Fell to 2.71% with points decreasing to 0.33
With mortgage rates actually falling this week, there must be something causing the decline in mortgage applications. The answer, inventory.
- Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement, “The housing market is in desperate need of more inventory to cool price growth and preserve affordability.”
- Pending home sales fell 10.6% from January to 110.3 in February according to The National Association of Realtors.
Until we increase the inventory levels mortgage applications and homes sales are going to remain depressed.
