According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending April 9, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -3.7% 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 -5% from the previous week and was -31% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -1% from one week earlier. The unadjusted Purchase Index decreased -1% 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, “Purchase and refinance applications declined, with most of the pullback coming earlier in the week when rates were higher. Treasury yields started last week high — close to the prior week’s level at over 1.7% — before decreasing 6 basis points. Refinance activity has now decreased for nine of the past 10 weeks, as rates have gone from 2.92% percent to 3.27% over the same period. Last week’s index level was the lowest in over a year, as mortgage rates continue to trend higher. Many borrowers have either already refinanced at lower rates or are unwilling — or unable — to refinance at current rates.” Kan added, “The third straight week of declining purchase activity is a sign that rising home prices and tight supply are constraining home sales – especially in the lower price tiers. Purchase applications were still above last year’s pandemic-impacted low point but fell behind the level of activity seen the same week in 2019.”
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Mortgage Applications Decrease in Latest MBA Weekly Survey