According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 17, 2021, the Market Composite Index (a measure of mortgage loan application volume) decreased -0.6% percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -1% compared with the previous week.
The Refinance Index increased 2% from the previous week but was -42% lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 3% from one week earlier. The unadjusted Purchase Index decreased -6% compared with the previous week and was -9% lower than the same week one year ago.
In a statement prepared for the release of this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage applications fell last week, driven by a 3 percent decline in purchase applications. Both conventional and government purchase applications were down, while the average purchase loan increased for the second straight week to $416,200 — the second highest amount ever. The elevated loan size is an indication that activity is more on the higher end of the market. Home-price appreciation growth remains faster than historical averages and inventory, particularly for starter homes, continues to trail strong demand.”
“The 30-year fixed rate decreased to 3.27 percent — its lowest level in four weeks — and helped spur an increase in refinances across all loan types,” Kan added. “FHA and VA refinances jumped 4 percent and 12 percent, respectively.”
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