Mortgage Applications Decline 11.4% in Week Ending February 19, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending February 19th, 2021, the Market Composite Index , a measure of mortgage loan application volume, decreased -11.4% on a seasonally adjusted basis from one week earlier. Marking the third straight week of declines. On an unadjusted basis, the Index decreased -10% from the previous week. The Refinance Index decreased -11% percent from the previous week but was 50% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased -12% from one week earlier. The unadjusted Purchase Index decreased -8% compared with the previous week but was 7% higher than the same week one year ago. Commenting on the steep decline in applications Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage rates have increased in six of the last eight weeks, with the benchmark 30-year fixed rate last week climbing above 3% to its highest level since September 2020. As a result of these higher rates, overall refinance activity fell -11% to its lowest level since December 2020 but remained 50 percent higher than a year ago. Additionally, the severe winter weather in Texas affected many households and lenders, causing more than a 40% drop in both purchase and refinance applications in the state last week.”