Mortgage application activity dropped 5.6% in the week ending April 22 despite a decline in mortgage rates, according to the Mortgage Bankers Association (MBA). However, the number was not adjusted for the Good Friday holiday.
The decline was mostly a result of a 13.5% decrease in the Purchase Index to 182. "Purchase applications fell last week, driven primarily by a sharp decrease in government purchase applications as new, higher [Federal Housing Administration (FHA)] premiums went into effect," said Michael Fratantoni, MBA vice president of research and economics. “This decrease reverses a 20% increase in government purchase applications over a four-week period, which was likely driven by borrowers attempting to beat this deadline.”