Mortgage Applications Jump 16.0% in the Week Ending July 9, 2021, Ending 2-week Downturn

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending July 9, 2021, the Market Composite Index — a measure of mortgage loan application volume, which includes an adjustment for the 4th of July holiday — increased 16.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -7% compared with the previous week. The Refinance Index increased 20% from the previous week but was -29% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 8% from one week earlier. The unadjusted Purchase Index decreased -13% compared with the previous week and was 29% lower than the same week one year ago.

Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, in a statement prepared for the release of this week’s survey said, “Overall applications climbed last week, driven heavily by increased refinancing as rates dipped again. Treasury yields have trended lower over the past month as investors remained concerned about the COVID-19 variant and slowing economic growth. Mortgage rates fell for the second consecutive week as a result, with the 30-year fixed rate hitting 3.09 percent, its lowest level since February 2021. Refinance applications increased over 20 percent last week after adjusting for the July 4th holiday, aided by a 23 percent increase in conventional refinance applications. Also, there may have been a delayed spillover of applications from the previous week, when rates also decreased, but there was not much of response in terms of refinance applications.” Kan went onto say, “Purchase applications increased last week, but average loan sizes decreased to their lowest level since January 2021. We continue to see ebbs and flows as housing demand remains strong, but for-sale inventory remains low. However, lower rates may be helping some home buyers close on their purchases, especially first-time home buyers. The year-over-year comparisons were down significantly for both purchase and refinance applications, as they were relative to a non-holiday week in 2020.”