Mortgage application volume dipped to end March
Apr 3 2013 3:05PM
As March came to an end, mortgage application volume declined, which could be a result of the tight inventory in many markets.
Homes for sale in West Hollywood are few and far between, which might have been part of the cause for the 4 percent drop in mortgage application volume during the week ending March 29.
Despite the decline, applications for purchases were up slightly from a week earlier. However, the Refinance Index dropped 6 percent in the same period.
"Total purchase applications increased last week, due to an almost 7 percent increase in purchase applications for government loans," said Mike Fratantoni, MBA's vice president of research and economics. "This was likely driven by borrowers applying for loans prior to the scheduled increase in FHA premiums that took effect on April 1,"
Mortgage rates continued to hover around all-time lows during the week ending March 28, which could help application volume pick up in the coming weeks, according to Freddie Mac's latest Primary Mortgage Market Survey.
As the spring buying season begins, more homes could be sold in West Hollywood, should interest rates remain affordable.
