U.S. mortgage applications drop 2% weekly, but purchase activity rises 1%, outpacing last year.

The latest Mortgage Bankers Association survey for the week ending March 21 shows U.S. mortgage applications fell 2.0% from the previous week, mainly due to a 5% drop in refinancing activity. Despite this, purchase activity increased 1%, reaching 7% higher than the same week last year, with FHA applications up 6%. The average 30-year fixed mortgage rate slightly decreased to 6.71%.