According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 3, 2021, the Market Composite Index (a measure of mortgage loan application volume) increased 2.0% percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 45% compared with the previous week.
The Refinance Index increased 9% from the previous week but was -37% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased -5% from one week earlier. The unadjusted Purchase Index increased 28% compared with the previous week but was -8% lower than the same week one year ago.
In a statement prepared for the release of this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage rates declined for the first time in a month, prompting a pickup in refinancing, with government refinances increasing more than 20 percent over the week. While the 30-year fixed mortgage rate and 15-year fixed mortgage rate both declined only one basis point, the FHA rate fell 7 basis points, driving the surge in government refinances. Borrowers are continuing to act on these opportunities, but if rates trend higher as MBA is forecasting, the window of opportunity to refinance will continue to get smaller.”
“The purchase market was slower last week, with applications falling after four consecutive increases,” Kan added. “Activity is still close to the highest level since March 2021, which is a positive sign as the year comes to an end. Purchase activity continues to be constrained by a lack of inventory, combined with rapid rates of home-price appreciation and mortgage rates higher than in 2020.”
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Mortgage Applications Increase in Latest MBA Weekly Survey