According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending March 12, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -2.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -2% compared with the previous week. The Refinance Index decreased -4% from the previous week and was -39% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 3% compared with the previous week and was 5% higher than the same week one year ago. Commenting on the second straight week of declines in mortgage applications Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage application activity was mixed last week, as the run-up in rates continues to reduce incentives for potential refinance borrowers. The 30-year fixed rate increased to its highest level since June 2020, and all other surveyed rates were either flat or increased. After reaching a recent high in the last week of January, the refinance index has since fallen 26% to its lowest level since September 2020. Rates have jumped 36 basis points since the end of January, and last week refinance activity fell across all loan types.” Kan added, “The purchase market helped offset the slump in refinances. Activity was up 5% from a year ago, as the recovering job market and demographic factors drive demand, despite ongoing supply and affordability constraints.”
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Mortgage Applications Decrease in Latest MBA Weekly Survey