Mortgage Applications Decline in the Week Ending April 23, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending April 23, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -2.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -2% compared with the previous week. The Refinance Index decreased -1% from the previous week and was -18% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -5% from one week earlier. The unadjusted Purchase Index decreased -4% compared with the previous week but was 34% higher than the same week one year ago. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said in prepared remarks, “Mortgage applications decreased last week, even as mortgage rates dropped for the third week in a row. The 30-year fixed rate was down 3 basis points to 3.17 percent, which is still 32 basis points higher than the low reported in December 2020. Even with a few weeks of lower rates, most borrowers have likely already refinanced, which is why activity has decreased in seven of the last eight weeks. The purchase market’s recent slide comes despite a strengthening economy and labor market. Activity is still above year-ago levels, but accelerating home-price growth and low inventory has led to a decline in purchase applications in four of the last five weeks.”