According to the latest Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 20, 2021, mortgage applications increased 1.6% from one week earlier.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.6% on a seasonally adjusted basis from the previous week.
The findings:
– Unadjusted, the index increased 1% compared with the previous week.
– The Refinance Index increased 1% from the previous week and was 3% higher YoY.
– The seasonally adjusted Purchase Index increased 3% from one week earlier.
– The unadjusted Purchase Index increased 1%compared with the previous week and was 16% lower YoY.
The takeaway:
Refinances are taking a back seat and FHA mortgage applications are increasing.
“Treasury yields fell last week, as investors continue to anxiously monitor if the rise in COVID-19 cases in several states starts to dampen economic activity. Mortgage rates slightly declined as a result, with the 30-year fixed rate decreasing for the first time in three weeks. Lower rates led to an increase in refinance applications, with government loan applications jumping 10% to the highest level since May 2021,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting, in a statement.
“Purchase applications for both conventional and government loans also increased,” added Kan. “The purchase index was at its highest level since early July, despite still continuing to lag 2020’s pace. There was also some easing in average loan sizes, which is potentially a sign that more first-time buyers looking for lower-priced homes are being helped by the recent uptick in for-sale inventory for both newly built homes and existing homes.”
