The Mortgage Bankers Association reported recently that mortgage applications fell 7.1% for the week ending March 15. This marked the second consecutive week of declines.

The refinance index dropped 8%, making it 10 straight weeks of declines. In addition, refinancing fell to 75% of all mortgage activity — its lowest level since May 2012. The purchase index saw a 4% decline week over week. However, the share of adjustable-rate mortgage activity remained the same, at 5% of total applications.

As for mortgage rates, the average 30-year fixed-rate mortgage rate with a conforming loan balance rose to 3.82% and the average 30-year FRM with a jumbo loan balance increased from 3.90% to 3.95%. The average contract interest rate for the 30-year FRM backed by the Federal Housing Administration stayed at 3.53%. The 15-year FRM rose slightly from 3.01% to 3.02% and the 5/1 adjustable-rate mortgage fell from 2.62% to 2.59%.

Analysts see this as a seasonal trend, with fewer buyers coming out during the winter season. When the weather becomes warmer during the spring season, that is when more homebuyers make their purchases.