Mortgage Applications Decrease in the Week Ending March 5, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending March 5, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -1.3% 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 decreased -5% from the previous week and was -43% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 7% from one week earlier. The unadjusted Purchase Index increased 9% percent compared with the previous week and was 2% higher than the same week one year ago. Commenting on the increase in applications, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “The 30-year fixed mortgage rate climbed to 3.26% last week, which is the highest since last July and up 40 basis points since the start of 2021. Signs of faster economic growth, an improving job market and increased vaccine distribution are pushing rates higher. The run-up in mortgage rates continues to cool demand for refinance applications. Activity declined last week for the fourth time in five weeks. With the spring buying season at the doorstep, the purchase market had its strongest showing in four weeks, with gains in both conventional and government applications. Overall activity was 2.4% higher than a year ago, and loan sizes moderated for the second straight week – potentially a sign that more first-time buyers are entering the market.”