According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS) for the week ending October 22, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -3.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by -4% compared with the previous week.
The Refinance Index decreased -4% from the previous week and was -33% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased -2% from one week earlier. The unadjusted Purchase Index decreased -3% compared with the previous week and was -9% 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 rates decreased for the first time since August, as concerns about supply-chain bottlenecks, waning consumer confidence, weaker economic growth, and rising inflation pushed Treasury yields lower. Most of the decline in rates came later in the week, which is likely why refinance applications declined to the lowest level since January 2020, and the overall share of activity fell to the lowest since July 2021. Government refinance applications fell for the sixth straight week, as it becomes evident that an increasing number of borrowers have already refinanced.”
Kan went onto say that “Purchase activity continues to be held back by high prices and low for-sale inventory, but current applications levels still point to healthy housing demand. MBA is forecasting for a record $1.6 billion in purchase mortgage originations this year, and sustained demand leading to another record year in 2022.”
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Mortgage Applications Decrease in Latest MBA Weekly Survey