The total number of new mortgage applications in the US dropped two percent in the week ending 1 April, as refinances fell significantly, according to recent statistics from the Mortgage Bankers Association.
The number of consumers who sought refinances for their current home loans fell 6.2 percent, as interest rates grew once again. It was the lowest level for refinances since the week ending 25 February.
Meanwhile, purchases actually grew 6.7 percent, the highest level witnessed since the start of the year.
“Purchase application volume increased last week reaching the highest level of the year, but remains relatively low by historical standards, at levels last seen in 1997,” said Michael Fratantoni, Vice President of Research and Economics at MBA.
“Borrowers were likely motivated to apply before a scheduled increase in FHA insurance premiums that became effective last Friday.”
The refinance share of mortgage activity decreased to 61.2 percent, down from 64.3 percent a week ago. It was the lowest refinance share since 7 May 2010.