“The latest data on inflation was not markedly better nor worse than expected, which was enough to bring mortgage rates down a bit, with the 30-year fixed mortgage rate declining slightly last week to 7.02%,” MBA senior vice president Mike Fratantoni said, adding that the significant boost in mortgage applications, particularly for FHA loans, underscores the first-time homebuyer segment’s sensitivity to rate fluctuations.
Fratantoni also suggested the increase in new listings was a positive sign for the upcoming spring buying season, given the current shortage of for-sale inventory.
Read next: How is the US housing market performing as spring buying approaches?
Further insights from the report show a decrease in the refinance share of mortgage activity, dropping to 30.2% of total applications from 31.2% the previous week. Conversely, the adjustable-rate mortgage (ARM) share saw an uptick to 7.7% of total applications.
The survey detailed changes in application shares by loan type, with the FHA share dipping slightly to 12.7% from 13.0%, and the VA share falling to 11.4% from 11.7%. The USDA share remained steady at 0.5%.
Source: mpamag.com