According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 31, 2021, the Market Composite Index (a measure of mortgage loan application volume) decreased -2.7% percent on a seasonally adjusted basis from two week earlier. On an unadjusted basis, the Index decreased -32% compared to two weeks ago.
The holiday-adjusted Refinance Index decreased -2% from two weeks ago and was -40% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased -4% from two weeks earlier. The unadjusted Purchase Index decreased -32% compared with two weeks ago and was -12% 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, “Mortgage rates continued to creep higher over the past two weeks, as markets maintained an optimistic view of the economy. The 30-year fixed rate increased 6 basis points to 3.33 percent — the highest since April 2021. The higher rates to close 2021 caused refinance activity to decrease 2.2 percent. Refinance demand continues to dwindle, as many borrowers refinanced in 2020, and in early 2021 — when mortgage rates were around 40 basis points lower. The purchase market also finished the year on a slower note, with the final week coming in at the weakest since October 2021. Even though average loan sizes were lower, home-price appreciation remains at very high levels.”
“Despite supply and affordability challenges, 2021 was a record year for purchase originations,” Kan added. “MBA expects 2022 to be even stronger, with total purchase activity reaching $1.74 trillion.”
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Mortgage Applications Decreased Over a Two-Week Period in Latest MBA Weekly Survey