MBA Survey Shows Increase In Mortgage Applications

 
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 9, 2021 mortgage applications increased 16.0 % compared to last week.
On a seasonally adjusted basis from last week the Market Composite Index, which is a measure of mortgage loan application volume, increased 16.0 %. On an unadjusted basis, the Index dropped 7 % from last week.
There was an increase of 20% in Refinance Index from the week earlier and was 29 % lower this time last year. Increase of 8% in the seasonally adjusted Purchase Index from one week earlier.
Decrease of 13% in the unadjusted Purchase Index compared to last week and was 29 % lower than the same time a year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said overall applications rose last week due to a drop in refinancing rates.
Over the past month, treasury yields have trended down due to the COVID-19 variant affecting the speed of economic growth.
Mortgage rates too feel resulting in 30 years fixed rate reaching 3.09%, which is the lowest since February 2021. Last week saw a 20% increase in refinance applications and a 23 % increase in conventional refinance applications.
Even though the purchase applications increased last week, the average loan sizes reduced to their lowest level since January 2021.
Last week the refinance share of mortgage activity increased from 61.6 % to 64.1 % of total applications. There was also an increase in adjustable-rate mortgage (ARM) share of activity to 3.5 % of total applications.
Last week also saw a drop in the FHA share of total applications from 9.8 % to 9.5 %.
Same time the VA share of total applications decreased from 10.8 % to 10.3 %. There was no change in the USDA share of total applications from 0.5 %.
Last week saw a drop in major rates except for 5/1 ARM.
The average rate for 30-year fixed-rate mortgages with conforming loans decreased from 3.15 % to 3.09 % for 80% LTV loans
The average rate for 30-year fixed-rate mortgages with jumbo loans decreased from 3.20% to 3.16% for 80% LTV loans.
The average interest rate for 30-year fixed-rate mortgages backed by the FHA decreased from 3.17 % to 3.15 %.
The average interest rate for 15-year fixed-rate mortgages dropped from 2.52% to 2.48 %.
The average rate for 5/1 ARMs increased from 2.94% to 3.02 %
Reference Source: MBA
https://www.compareclosing.com/mortgagenews/mba-survey-shows-increase-in-mortgage-applications/

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