Mortgage Applications Decline for Second Consecutive Week During Week Ending May 28, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending May 28, 2021, the Market Composite Index (a measure of mortgage loan application volume) decreased -4.0% 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 but was 6% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased -3% from one week earlier. The unadjusted Purchase Index decreased -5% compared with the previous week and was -2% 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 for the second week in a row, with the overall index reaching its lowest level since February 2020. Tight housing inventory, obstacles to a faster rate of new construction, and rapidly rising home prices continue to hold back purchase activity. The government purchase index declined to its lowest level in over a year and has now decreased year-over-year for five straight weeks. Purchase applications were down almost 2 percent from a year ago, but that was compared to the week of Memorial Day 2020.” Kan went onto say that, “Refinance activity dropped for the second straight week, even as the 30-year fixed rate decreased slightly to 3.17 percent. Even though rates have been below 3.20 percent over the past month, they are still around 20-30 basis points higher than the record lows in late 2020.”