For the week ended July 9, 2021, mortgage applications increased 16.0% from the week before, according to the Ministry of Finance. Mortgage Bankers Association (MBA) Weekly review of mortgage applications. This week’s results include an adjustment for the Fourth of July holiday.
– Seasonally adjusted composite market index: + 16.0% WoW
– Unadjusted composite market index: -7% WoW
– Refinancing Index: + 20% WoW
– Seasonally adjusted shopping index: + 8% WoW
– Index of unadjusted purchases: -13% WoW
The peak in applications was caused primarily by the growing popularity of refinancing against the backdrop of low rates.
“Treasury yields have declined over the past month as investors remain concerned about the COVID-19 option and slowing economic growth,” said Joel Kahn, MBA’s deputy vice president of economic and industry forecasting. “As a result, mortgage rates fell for the second week in a row, with the 30-year fixed rate hitting 3.09%, the lowest level since February 2021. Refinancing applications rose more than 20% last week after adjusting for the 4th of July holiday, boosted by a 23% increase in regular refinancing applications. In addition, there could be a delayed spread of applications from the previous week, when rates also decreased, but there was not much response in terms of refinancing applications. “
Kahn added: “Purchase orders increased in the last week, but average loan sizes fell to their lowest level since January 2021. We continue to see the ebb and flow as demand for housing remains strong but stocks for sale remain low. However, lower rates may help some home buyers complete their purchases, especially first-time homebuyers. The year-to-year comparisons have dropped significantly for both purchase bids and refinancing bids as they were compared to a week without a weekend in 2020. ”