Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey was recently released, finding that mortgage applications posted a decline of 1.9 percent since the previous week. On an unadjusted basis, the index decreased 1 percent week-over-week.
Here’s a breakdown by index type:
– Refinance Index: -5 percent WoW, +87 percent YoY
– Seasonally Adjusted Purchase Index: +3 percent WoW
– Unadjusted Purchase Index: +9 percent WoW, +15 percent YoY
And by application type…
– Refinance: Decreased to 72.3 since the previous week
– Adjustable-Rate Mortgage: Increased to 2.1 percent
– FHA: Decreased to 9.3 percent
– VA: Decreased to 13.8 percent
– USDA: Unchanged from 0.4 percent WoW
“Mortgage rates increased across the board last week, with the 30-year fixed rate rising to 2.92 percent—its highest level since November 2020—and the 15-year fixed rate increasing for the first time in seven weeks to 2.48 percent. Market expectations of a larger than anticipated fiscal relief package, which is expected to further boost economic growth and lower unemployment, have driven Treasury yields higher the last two weeks,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “After a post-holiday surge of refinances, higher rates chipped away at demand. There was a 5 percent drop in refinance activity, driven by a 13.5 percent pullback in government refinances.”
Added Kan, “Purchase applications remained strong based on current housing demand, rising over the week and up a noteworthy 15 percent from last year. Homebuyers in early 2021 continue to seek newer, larger homes. The average loan size for purchase loans jumped to $384,000, the second highest level in the survey.”
