Mortgage Applications Increase in the Week Ending October 8, 2021

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending October 8, 2021, the Market Composite Index — a measure of mortgage loan application volume — increased 0.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.4% compared with the previous week.

The Refinance Index decreased -1% from the previous week and was -16% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week but was -10% 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, “Mortgage rates reached their highest level since June 2021, but application activity changed little this week. An increase in home purchase applications offset a slight decline in refinances. The increase in purchase applications was welcome news but was primarily driven by a 2 percent gain in conventional purchase applications, which kept the average loan size elevated.”

Kan went onto say, “The 30-year fixed rate reached 3.18 percent last week and has risen 15 basis points over the past month, resulting in an 11 percent drop in refinance applications during this time. Government refinance applications fell over 3 percent last week, driven by a decline in FHA refinances and an 8-basis-point increase in the average FHA mortgage rate. We continue to expect weakening refinance activity as rates move higher and borrowers see less of a rate incentive.”