Mortgage Applications Decline 4.2% in the Week Ending May 21, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending May 21, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -4.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased- 4% compared with the previous week. The Refinance Index decreased -7% from the previous week and was -9% 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 -4% lower than the same week one year ago. In a statement prepared for the release of the weekly survey, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage applications decreased last week as mortgage rates increased to 3.18 percent. Refinances dropped 7 percent as a result, driven by declines in both conventional and government refinance activity. Purchase applications increased for the second time in three weeks, rebounding after a rather weak April with mostly weekly declines. While purchase activity was around 4 percent lower than a year ago, the comparison is to last spring’s large upswing in activity as pandemic-related lockdowns lifted. Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices.”