Mortgage Applications Decline for Second Consecutive Week in the Week Ending September 3, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending September 3, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -1.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -3% compared with the previous week. The Refinance Index decreased -3% from the previous week and was -4% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -0.2% from one week earlier. The unadjusted Purchase Index decreased -3% compared with the previous week and was -18% lower than the same week one year ago.

In remarks prepared for the release of this week’s WMAS, Mike Fratantoni, MBA’s Senior Vice President and Chief Economist said, “Mortgage application volume fell last week to its lowest level since mid-July, as mortgage rates have stayed just above 3% for several weeks. Refinance volume has been moderating, while purchase volume continues to be lower than expected given the lack of homes on the market. Economic data has sent mixed signals, with slower job growth but a further drop in the unemployment rate in August. We expect that further improvements will lead to a tapering of Fed MBS purchases by the end of the year, which should put some upward pressure on mortgage rates.”