According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending July 23, 2021, the Market Composite Index, a measure of mortgage loan application volume, increased 5.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6% compared with the previous week. The Refinance Index increased 9% from the previous week but was -10% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased -2% from one week earlier. The unadjusted Purchase Index decreased -1% compared with the previous week and was -18% lower than the same week one year ago.
In a statement 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 fell last week, as investors grew concerned about increasing COVID-19 case counts and the downside risks to the current economic recovery. Refinance applications jumped, as the 30-year fixed mortgage rate declined to its lowest level since February 2021, and the 15-year rate fell to another record low dating back to 1990. Refinances for conventional loans increased over 11%. With over 95% of refinance applications for fixed rate mortgages, borrowers are looking to secure a lower rate for the life of their loan.” Kan went onto say that, “The purchase index decreased for the second week in a row to its lowest level since May 2020, and has now declined on an annual basis for the past three months. Potential buyers continue to be put off by extremely high home prices and increased competition. The FHFA reported yesterday that May home prices were 18% higher than a year ago, continuing a seven-month trend of unprecedented home-price growth.”
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Mortgage Applications Increase in Latest MBA Weekly Survey