Mortgage Applications Decline for Fifth Week in a Row in the Week Ending April 2, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending April 2, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -5.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -5% compared with the previous week. The Refinance Index decreased -5% from the previous week and was -20% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -5% from one week earlier. The unadjusted Purchase Index decreased -4% compared with the previous week but was 51% higher than the same week one year ago. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said in prepared remarks, “Mortgage rates resumed their upward move last week, with the 30-year fixed rate at 3.36%. The return of rates to the highest level since last June contributed to a slowdown in applications for both purchases and refinances. The rapidly recovering economy and improving job market is generating sizeable home buying demand, but activity in recent weeks is constrained by quicker home-price growth and extremely low inventory.” Kan went on to say, “Refinance applications declined for the fifth straight week, but there was a gain in VA loan activity. Overall, refinance demand has decreased, with volume over the past 10 weeks down by more than 30%.”