US Mortgage Applications Decrease in the Week Ending December 13th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, December 13th, the Market Composite Index—a measure of mortgage loan application volume—declined 0.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2.0% compared with the previous week.

The Refinance Index decreased 3.0% from the previous week but was 41.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 1.0% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week but was 6.0% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks. Conventional and VA purchase applications drove this week’s increase in purchase activity on a weekly and annual basis. Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market. Refinance applications declined last week, largely driven by VA refinances that were down 17% after two weeks of gains.”