Mortgage Applications Declined in the Week Ending July 16, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending July 16, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -4.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased -20% compared with the previous week. The Refinance Index decreased -3% from the previous week and was -18% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -6% from one week earlier. The unadjusted Purchase Index increased 17 percent compared with the previous week bit was -18% lower than the same week one year ago.

In remarks prepared for this week’s survey release, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “The 10-year Treasury yield dropped sharply last week, in part due to investors becoming more concerned about the spread of COVID variants and their impact on global economic growth. There were mixed changes in mortgage rates as a result, with the 30-year fixed rate increasing slightly to 3.11 percent after two weeks of declines. Other surveyed rates moved lower, with the 15-year fixed rate loan, used by around 20 percent of refinance borrowers, decreasing to 2.46 percent — the lowest level since January 2021. Kan added that “On a seasonally adjusted basis compared to the July 4th holiday week, mortgage applications were lower across the board, with purchase applications back to near their lowest levels since May 2020. Limited inventory and higher prices are keeping some prospective homebuyers out of the market. Refinance activity fell over the week, but because rates have stayed relatively low, the pace of applications was close to its highest level since early May.”