Mortgage Applications Decline in the Week Ending February 21

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, February 21, the Market Composite Index—a measure of mortgage loan application volume—decreased 1.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4.0% compared with the previous week.

The Refinance Index decreased 4.0% from the previous week but was 45.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index was unchanged from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week but was 3% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Treasury yields moved lower on softer consumer spending data as consumers are feeling somewhat less upbeat about the economy and job market. This pushed mortgage rates lower, with the 30-year fixed rate decreasing to 6.88%, the lowest rate since mid-December. Applications were about one percent lower for the week, which included the President’s Day holiday, as purchase applications stayed flat from a week ago while refinance applications saw a small decline. Purchase applications were up 3% from the same week last year. Increasing for-sale inventory in some markets has provided prospective buyers more options as we approach the spring homebuying season.”

Although overall refinance application activity remained fairly weak, FHA refinance applications saw an 8% increase over the week. Compared to last year, overall refinance applications were up 45%.”