Mortgage Applications Fell in Latest Week
Summary
- Applications for loans to purchase rose, while applications for loans to refinance declined.
- Fixed mortgage rates are range-bound.
- Decline in average loan size continues for the third consecutive week.


Mortgage applications fell 1.6% (+24.5% y/y) in the week ended March 28, after declining 2.0% (+25.8% y/y) in the week ended March 21, according to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey. Applications for loans to purchase a home rose 1.5% (8.7% y/y) in the latest week, following a rise of 0.7% (6.9% y/y) in the prior week. Applications to refinance existing mortgages declined 5.6% (+56.6% y/y) in the week ended March 28, after a decline of 5.3% (+63.2% y/y) in the week ended March 21.
The effective interest rate on a 30-year fixed rate loan remained unchanged at 6.88% in the week ended March 28 from the prior week. The effective rate on a 15-year fixed rate loan declined 6bps to 6.19% in the week ended March 28 from 6.25% in the March 21 week. The rate on a 30-year jumbo loan edged down 2bps to 6.90% in the latest week from 6.92% in the week ended March 21, while the rate on a 5-year ARM rose 16bps to 6.26% in the latest week from 6.10% in the week ended March 21.
The share of applications to refinance an existing mortgage fell to 38.6% in the week ended March 28 from 40.4% in the week ended March 21. That share had reached a low level of 38.7% in the week of February 14. The share of loans that have an adjustable rate rose to 6.5% in the latest week, up from 6.3% in the prior week.
The average size of a mortgage loan edged down 0.3% (+0.3% y/y) to $396,600 in the week ended March 28, following a decline of 1.0% (+2.8% y/y) to $397,900 in the week ended March 21. The average size of a loan to purchase a home was $447,500 in the latest week, up 1.1% (-1.2% y/y) from $442,800 the week before. The average size of a loan to refinance an outstanding mortgage declined 4.8% (+19.8% y/y) to $315,700 in the week ended March 28 from $331,700 in the week ended March 21.
The Mortgage Bankers Association Survey covers 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver’s SURVEYS database.
Kathleen Stephansen, CBE
AuthorMore in Author Profile »Kathleen Stephansen is a Senior Economist for Haver Analytics and an Independent Trustee for the EQAT/VIP/1290 Trust Funds, encompassing the US mutual funds sponsored by the Equitable Life Insurance Company. She is a former Chief Economist of Huawei Technologies USA, Senior Economic Advisor to the Boston Consulting Group, Chief Economist of the American International Group (AIG) and AIG Asset Management’s Senior Strategist and Global Head of Sovereign Research. Prior to joining AIG in 2010, Kathleen held various positions as Chief Economist or Head of Global Research at Aladdin Capital Holdings, Credit Suisse and Donaldson, Lufkin and Jenrette Securities Corporation.
Kathleen serves on the boards of the Global Interdependence Center (GIC), as Vice-Chair of the GIC College of Central Bankers, is the Treasurer for Economists for Peace and Security (EPS) and is a former board member of the National Association of Business Economics (NABE). She is a member of Chatham House and the Economic Club of New York. She holds an undergraduate degree in economics from the Universite Catholique de Louvain and graduate degrees in economics from the University of New Hampshire (MA) and the London School of Economics (PhD abd).