According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending April 16, 2021, the Market Composite Index — a measure of mortgage loan application volume — increased 8.6% percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 9% compared with the previous week. The Refinance Index increased 10% from the previous week but was -23% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 6% from one week earlier. The unadjusted Purchase Index increased 7% compared with the previous week and was 57% higher than the same week one year ago. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said in prepared remarks, “Mortgage rates dropped to their lowest levels in around two months, prompting a small resurgence in refinance activity after six weeks of declines. Borrowers acted on the decrease in rates for most loan types, with both conventional and government refinance applications showing gains. The spring housing market also saw a boost from lower rates, with purchase applications — driven by a jump in conventional applications — increasing over 5%. MBA expects the purchase market to remain strong, with the recovering job market and supportive demographics fueling housing demand in the months ahead.” Kan went onto say that, “The average loan size for purchase applications increased after a few weeks of declines, as fewer homes available for sale make for a competitive buying market that is accelerating home-price growth.”
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