Mortgage Applications Drop -6.9% in the Week Ending June 25th, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending June 25th, 2021, the Market Composite Index , a measure of mortgage loan application volume decreased -6.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -7% compared with the previous week. The Refinance Index decreased -8% from the previous week and was -15% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -5% from one week earlier. The unadjusted Purchase Index decreased -6% compared with the previous week and was -17% lower than the same week one year ago. In a statement prepared for the release of this week’s application survey, Mike Fratantoni, MBA’s Senior Vice President and Chief Economist said, “Mortgage application volume fell to the lowest level in almost a year and a half, with declines in both refinance and purchase applications. Mortgage rates were volatile last week, as investors tried to gauge upcoming moves by the Federal Reserve amidst several divergent signals, including rising inflation, mixed job market data, strong consumer spending, and a supply-constrained housing market that has led to rapid home-price growth. Purchase applications for conventional loans declined last week to the lowest level since last May. The average loan size for total purchase applications increased, indicating that first-time homebuyers, who typically get smaller loans, are likely getting squeezed out of the market due to the lack of entry-level homes for sale.”