U.S. weekly mortgage applications drop 1.3 percent

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 1.3 percent in the week ended March 5, following a 0.5 percent increase in the previous week.

According to the report, refinance applications declined 5.0 percent, while applications to purchase a home went surged 7.2 percent.

Meanwhile, the average fixed 30-year mortgage rate climbed from 3.23 percent to 3.26 percent, the highest since the week ended July 3.

“Signs of faster economic growth, an improving job market and increased vaccine distribution are pushing rates higher,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The run-up in mortgage rates continues to cool demand for refinance applications. Activity declined last week for the fourth time in five weeks.”