Mortgage applications increased 2.0% for the week ending Dec. 3, 2021, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
- The Market Composite Index, a measure of mortgage loan application volume, increased 2.0% on a seasonally adjusted basis from the previous week.
- Unadjusted, the Index increased 45% compared with the previous week.
- The Refinance Index increased 9% from the previous week—37% lower YoY.
- The seasonally adjusted Purchase Index decreased 5% from the previous week.
- The unadjusted Purchase Index increased 28% from the previous week—8% lower YoY.
- The refinance share of mortgage activity increased to 63.9% of total applications.
- The adjustable-rate mortgage (ARM) share of activity decreased to 3.0% of total applications.
- The FHA share of total applications increased to 9.9% from the previous week.
- The VA share of total applications increased to 10.7% from the previous week.
- The USDA share of total applications was flat from 0.5 percent the previous week.
“Mortgage rates declined for the first time in a month, prompting a pickup in refinancing, with government refinances increasing more than 20% 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,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting, in a statement.
“The purchase market was slower last week, with applications falling after four consecutive increases. Activity is still close to the highest level since March 2021, which is a positive sign as the year comes to an end,” he added. “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.”