Mortgage applications declined 1.2% from the previous week in the week ended March 14, according to the latest data from the Mortgage Bankers Association.

The refinance and purchase indices also dipped 1% from the previous week, according to a Wednesday press release from the MBA. The organization's Weekly Mortgage Applications Survey covers 75% of U.S. retail residential mortgage applications.

"The recent volatility in the bond market may be leaving some potential homebuyers balancing on the fence until they see rates stabilize a bit," Quicken Loans vice president Bill Banfield said in an email Wednesday. "Look for the purchase market to tick up in the coming weeks, with buyers taking advantage of increasing inventory as spring approaches as well as low rates, which most believe will only rise over the course of this year."

The share of mortgage activity composed of refinances fell for the sixth straight week, decreasing to 56.6% from 57% the previous week. The adjustable-rate mortgage share of activity held steady at 8% of total applications.

The average interest rate for 30-year fixed-rate mortgages of $417,000 or less fell two basis points to 4.5%. The average interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration declined five basis points to 4.13%.

The average interest rate for 30-year fixed-rate mortgages with balances above $417,000 dipped two basis points to 4.39%.

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