Mortgage applications decline mid February 2016

As mortgage rates moved up just a bit; mortgage applications fell…declining over 4% mid February 2016 compared to earlier in the month according to the Mortgage Bankers Association.  The move in mortgage rates was not significant so it’s not exactly clear if it caused the slow down in mortgage application and reduced loan volume.  Refinance mortgage volume slowed the most; declining 8% and purchase applications increased slightly.  Purchase volume is less rate sensitive than refinance loan volume.  The average mortgage rate remained below 4.00% and since the beginning of the year mortgage rates have been aggressive considering the volatility in the bond market.