Mortgage applications continue to fall as interest rates increase for a second week

The number of mortgage applications for the week ending March 20, 2013  decreased 7.1 percent percent on a seasonally adjusted basis from one week earlier, the Mortgage Bankers Association announced today. On an unadjusted basis, the Index decreased 7 percent compared with the previous week.

The Refinance Index decreased 8 percent from the previous week and the seasonally adjusted Purchase Index decreased 4 percent from one week earlier.  Unadjusted, the Purchase Index decreased 3 percent compared with the previous week and was 6 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased 1 percent to 75 percent of total applications, its tenth straight week of decline and  its lowest level since early May 2012. The adjustable-rate mortgage share of activity held at 5 percent of total applications.

Interest rates for 30-year fixed-rate loans with conforming balances increased to 3.82 percent from 3.81 percent. Interest rates for jumbo loans also increased to 3.95 percent from 3.90 percent. Rates for Federal Housing Administration-backed 30-year fixed-rate loans stayed at 3.53 percent and 15-year fixed-rate mortgages increased to 3.02 percent from 3.01. —Christopher Cameron