Mortgage Applications Decline for Third Consecutive Week in the Week Ending June 4, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending June 24, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased by 3.1% percent on a seasonally adjusted basis from one week earlier. This week’s results include an adjustment for the Memorial Day holiday. On an unadjusted basis, the Index decreased -13% compared with the previous week. The Refinance Index decreased -5% from the previous week and was -27% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 0.3 percent from one week earlier. The unadjusted Purchase Index decreased -11% compared with the previous week and was -24% 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, “Most of the decline in mortgage rates came late last week, with the 30-year fixed-rate mortgage declining to 3.15 percent. This likely impacted refinance applications, which fell 5 percent for both conventional and government loans. With fewer homeowners able to take advantage of lower rates, the refinance share dipped to the lowest level since April. Purchase applications were up slightly last week, and the large annual decline was the result of Memorial Day 2021 being compared to a non-holiday week, as well as the big upswing in applications seen last May once pandemic-induced lockdowns started to lift.” Kan went onto say that, “The average loan size on a purchase application edged down to $407,000, below the record $418,000 set in February, but still far above 2020’s average of $353,900. Home-price growth continues to accelerate, driven by favorable demographics, the recovering job market and economy, and housing demand far outpacing supply.”