Mortgage Applications Decline in Week Ending December 10, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 10, 2021, the Market Composite Index (a measure of mortgage loan application volume) decreased -4% percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -6% compared with the previous week.

The Refinance Index decreased -6% from the previous week and was -41% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 4% compared with the previous week but was -9% lower than the same week one year ago.

In remarks prepared for the release of this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Applications to refinance fell over the week, despite the 30-year fixed rate remaining at 3.30 percent. With rates more than 40 basis points higher than last year, applications were down 41 percent on an annual basis. Fewer homeowners have a strong incentive to refinance at current rates.”

“Purchase activity increased slightly, as a 1.7 percent rise in conventional applications offset a 1.6 percent decline in applications for government loans,” Kan added. “The strength in conventional purchase activity continues to support higher loan balances, which moved back over $400,000. Housing demand remains strong as the year comes to an end amidst tight inventory and steep home-price growth.”