Mortgage Applications Decline Sharply in Week Ending November 26, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending November 26, 2021, which includes adjustments for the Thanksgiving holiday, the Market Composite Index (a measure of mortgage loan application volume) decreased -7.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -37% compared with the previous week.

The Refinance Index decreased -15% from the previous week and was -41% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 5% from one week earlier. The unadjusted Purchase Index decreased -30% compared with the previous week and was -8% lower than the same week one year ago.

In remarks prepared for the release of this week’s survey, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage rates rose for the third week in a row, reducing the refinance incentive for many borrowers. The 30-year fixed rate hit 3.31 percent — the highest since this April — and led to refinance applications falling more than 14 percent. Over the past three weeks, rates are up 15 basis points and refinance activity has declined over 18 percent.”

“Despite higher mortgage rates, purchase applications had a strong week, mostly driven by a 6 percent increase in conventional loan applications,” Kan added. “Conventional loans tend to be larger than government loans, and this was evident in the average loan amount, which increased to $414,700 — the highest since February 2021. As home-price appreciation continues at a double-digit pace, buyers of newer, pricier homes continue to dominate purchase activity, while the share of first-time buyer activity remains depressed.”