According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending November 19, 2021, the Market Composite Index (a measure of mortgage loan application volume) increased 1.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.1% compared with the previous week.
The Refinance Index increased 0.4% from the previous week but was -34% lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 5% from one week earlier. The unadjusted Purchase Index decreased -0.4% compared with the previous week and was -4% lower than the same week one year ago.
In a statement prepared for this week’s survey, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “The financial markets continue to discern the Federal Reserve’s policy path in the coming months in light of the current high growth, high inflation environment. Despite a fair amount of rate volatility last week, mortgage rates were higher, with the 30-year fixed rate increasing 4 basis points to 3.24 percent. Despite the increase in rates, refinance applications rose slightly, driven by a 2 percent gain in conventional refinances. Borrowers continue to lock in mortgages in anticipation of higher rates in the future. Refinance applications were still more than 30 percent below a year ago, when the 30-year fixed rate was 32 basis points lower.”
“Purchase activity increased for the third straight week, as housing demand remains robust, even as the housing market approaches the typically slower holiday season,” Kan added. “Both conventional and government loan applications increased, and the average loan size for a purchase loan was at $407,200, continuing its ongoing 2021 run of being mostly above $400,000.”
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Mortgage Applications Increase in Latest MBA Weekly Survey