Despite interest rates well below 5 percent, mortgage applications continue to be in flux this month.

Loan applications increased 2.7 percent for the week ending March 18, after dropping the previous week. Earlier this month, mortgage applications posted a 15 percent drop, according to the Mortgage Bankers Association.

The unadjusted purchase index for mortgage applications increased 3 percent this week compared to the week prior. However, the purchase index remains down 15.3 percent compared to the same week a year ago.

Meanwhile, refinancing activity mostly stayed stable this week at 66.4 percent of the total applications, MBA reports.

Source: “Mortgage Applications Remain in Flux, Rise 2.7%,” HousingWire (March 23, 2011)