Mortgage applications dropped 1.6% from one week earlier, according to the Mortgage Bankers Association’s survey of mortgages for the week ending April 4, 2014.
The MBA’s measure of mortgage loan application volume fell 1.6% on a seasonally adjusted basis from one week earlier, the fourth decline in four weeks after a spike of almost 10% at the start of March.
The refinance index decreased 5% from the previous week and is at its lowest level since the end of 2013.
The seasonally adjusted purchase index increased 3% from one week earlier.\
“Despite a drop in overall applications from the week before, purchase activity is still climbing as rates remain low and spring selling season is starting to ramp up. With home values back at healthy levels, look for inventory to increase in the coming weeks, which will continue to drive this trend of rising purchase activity,” said Quicken Loans vice president Bill Banfield.
The refinance share of mortgage activity decreased to 51% of total applications from 53% the previous week and is at its lowest level since July 2009.
The adjustable-rate mortgage share of activity remained unchanged at 8% of total applications.