Mortgage rates remained relatively flat last week, bringing down refinance applications. Overall applications dipped 2.4% from the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug.27, 2021.
The details:
– Market Composite Index: Decreased 2.4% on a seasonally adjusted basis from the previous week.
– Unadjusted, the Index decreased 3% compared with the previous week.
– The Refinance Index decreased 4% from the previous week and was 2% higher than the same week one year ago.
– The seasonally adjusted Purchase Index increased 1% from one week earlier.
– The unadjusted Purchase Index decreased 2% compared with the previous week—16% lower than the same week one year ago.
The takeaway:
Some borrowers are holding out for lower rates before refinancing, bringing down application rates.
“Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated around these levels,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting, in a statement. “Even with a slight increase, purchase activity hit its highest level since early July, as applications for conventional and government loans increased.”
“Home purchase activity continues to be dominated by higher price tiers of the market, with the purchase average loan size now at $396,500, the highest average in five weeks,” added Kan. “According to FHFA, June’s year-over-year increase in home prices was 18.8%, while the second quarter saw a 17.4% increase overall. Both measures set new records, as housing demand continued to outpace the inventory of homes for sale.”
