According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending October 1, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -6.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -7% compared with the previous week.
The Refinance Index decreased -10% from the previous week and was -16% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased -2% from one week earlier. The unadjusted Purchase Index decreased -2% compared with the previous week and was 13% lower than the same week one year ago.
In remarks prepared for this week’s survey, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage applications to refinance dropped almost 10 percent last week to the lowest level in three months, as the 30-year fixed rate increased to 3.14 percent — the highest since July. Higher rates are reducing borrowers’ incentive to refinance, as declines were seen across all loan types.”
“Purchase activity also fell, driven by a drop in conventional loan applications. Government purchase applications were up over 1 percent, but that was still not enough to bring down the average loan balance of $410,000. With home-price appreciation and sales prices remaining very elevated, applications for higher balance, conventional loans still dominate the mix of activity,” Kan added.
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Mortgage Applications Decrease in Latest MBA Weekly Survey