Mortgage applications increased 2.8% for the week ending Aug. 6, 2021, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The Market Composite Index, a measure of mortgage loan application volume, increased 2.8% on a seasonally adjusted basis from one week earlier.
The details:
– Unadjusted, the Index increased 3% compared with the previous week.
– The Refinance Index increased 3% from the previous week—8% lower YoY.
– The seasonally adjusted Purchase Index increased 2% from one week earlier.
– The unadjusted Purchase Index increased 1% compared with the previous week—18% lower YoY.
The takeaway:
Refi applications are still flooding in as homeowners look to take advantage of historic low rates. Meanwhile, home loans continue rising in size as home values skyrocket amid the competitive real estate market.
“Mortgage applications rebounded last week, including an increase in purchase applications for the first time in nearly a month. Rates slightly rose but remained below 3%, driven by an end-of-week increase in the 10-year Treasury yield following the positive July jobs report,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021. The refinance share of loan counts was at 68%, compared to a 63.4% share for refinances by dollar volume, as purchase loans continue to see significantly higher loan sizes.”
“The higher level of purchase activity last week was driven by more government purchase applications, including a 3.3% increase in FHA loans,” added Kan. “With low for-sale inventory keeping home-price appreciation in many markets at record highs, the jump in FHA purchase applications is potentially a sign that more first-time buyers are finding purchase options despite the high prices.”
