The latest data from the Mortgage Bankers Association (MBA) showed that purchase activity is holding steady across the country, but refinance activity dropped considerably since a peak in February. Mortgage applications decreased 2.7 percent from one week earlier, according to data from the MBA’s Weekly Mortgage Applications Survey for the week ending March 23.

The Refinance Index decreased 4.6 percent from the previous week. The Refinance Index has decreased for six consecutive weeks, falling to its lowest level since December, and is 24.2 percent lower than its 2012 peak observed in February. The decline in the Refinance Index this week was driven largely by a 12 percent drop in government refinance activity, while conventional refinance applications fell by less, decreasing 3.4 percent from the previous week. The seasonally adjusted Purchase Index increased 3.3 percent from one week earlier.

The four-week moving average for the seasonally adjusted Market Index is down 3.40 percent. The four-week moving average is up 2.14 percent for the seasonally adjusted Purchase Index, while this average is down 4.94 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 71.9 percent of total applications, the lowest level since July 2011, from 73.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.4 percent from 5.6 percent of total applications from the previous week.

During the month of February, the investor share of applications for home purchase was at 6.1 percent, a decrease from 6.4 percent in January. This change was led by a decrease in the New England region. In addition, the share of purchase mortgages for second homes decreased to 5.8 percent in February from 5.9 percent in January.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.23 percent, the highest rate since November 2011, from 4.19 percent, with points decreasing to 0.45 from  0.47 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.54 percent, the highest since rate December 2011,  from 4.49 percent, with points increasing to 0.46 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.96 percent from 3.93 percent, with points increasing to 0.52 from 0.48 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.50 percent, the highest rate since December 2011, from 3.47 percent, with points increasing to 0.42 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 3.00 percent, the highest since rate December 2011, from 2.90 percent, with points decreasing to 0.42 from 0.44 (including the origination fee) for 80 percent LTV loans.