Mortgage Applications Decline for Second Consecutive Week in the Week Ending 30th April 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending April 30, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -0.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -1% compared with the previous week. The Refinance Index increased 0.1% from the previous week but was -17% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -3% from one week earlier. The unadjusted Purchase Index decreased -2% compared with the previous week but was 24% higher 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, “There was a mixed bag of action in the mortgage market last week. Mortgage rates were slightly higher, refinance applications were essentially unchanged, and purchase applications fell for the second straight week. Both conventional and government purchase applications declined, but average loan sizes increased for each loan type. This is a sign that the competitive purchase market, driven by low housing inventory and high demand, is pushing prices higher and weighing down on activity. The higher prices are also affecting the mix of activity, with stronger growth in purchase loans with larger-than-average balances”. Kan added that, “An increase in conventional refinances was offset by a decline in government refinances. The 30-year fixed rate was up slightly to 3.18%, which is still 22 basis points lower than a year ago, but higher than it was between mid-2020 and February 2021.”