Low mortgage rates are no longer a novelty, hence no longer a sudden incentive for borrowers. Total mortgage application volume decreased 4.8 percent on a seasonally adjusted basis for the week ending February 26th versus the previous week, according to the Mortgage Bankers Association (MBA). This follows a mini-refinance boom, as rates fell through January and February to near record lows.
Applications to refinance decreased 7 percent from the previous week, seasonally adjusted, falling to the lowest level since the start of the year. The average amount for refinance loans was $279,200, the lowest since mid-January, when refinances really took off.
"Despite a slight drop in rates, refinance applications decreased overall. Applications for both conventional and government refinance loans decreased, as the supply of borrowers who could benefit from rates at this level begins to diminish," said Joel Kan, MBA's associate vice president for forecasting and industry surveys.