Mortgage Application Volume Rebounds in the Week Ending August 6, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending August 6, 2021, the Market Composite Index — a measure of mortgage loan application volume — increased 2.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3% compared with the previous week. The Refinance Index increased 3% from the previous week but was -8% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week but was -18% lower than the same week one year ago.

In remarks prepared for the release of the statement, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage applications rebounded last week, including an increase in purchase applications for the first time in nearly a month. Rates slightly rose but remained below 3 percent, driven by an end-of-week increase in the 10-year Treasury yield following the positive July jobs report. Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021. The refinance share of loan counts was at 68 percent, compared to a 63.4 percent share for refinances by dollar volume, as purchase loans continue to see significantly higher loan sizes.”

Kan went onto say, “The higher level of purchase activity last week was driven by more government purchase applications, including a 3.3 percent increase in FHA loans. With low for-sale inventory keeping home-price appreciation in many markets at record highs, the jump in FHA purchase applications is potentially a sign that more first-time buyers are finding purchase options despite the high prices.”