US mortgage applications pull back as rates climb

(Sharecast News) - Mortgage applications in the United States pulled back last week after a significant uptick over the preceding two weeks, as long-term mortgage rates rose for the first time in more than two months. In the week ended 14 March, mortgage applications declined by 6.2% on a seasonally adjusted basis from one week earlier according to the Mortgage Bankers Association.

That followed an 11.2% jump in the first week of March and a 20.4% surge in the last week of February as mortgage rates tracked long-date Treasury yields lower.

However, rising yields over the most recent week led to the first increase in 30-year fixed-rate mortgages in nine weeks, which rose to 6.72% from 6.67% the week before. During the same week of 2024, the rate was 6.97%.

While refinancing volumes were lower, purchase application volumes inched up to their highest level in six weeks, the MBA said.

"Overall, purchase application volume is up 6% compared to last year at this time," said Mike Fratantoni, the MBA's senior vice president and chief economist.

"Growing inventories of homes on the market and steadier mortgage rates are supporting homebuying activity thus far this spring."