Mortgage volume declines after a short spike



After seasonally adjusted surge According to the Mortgage Bankers Association, which lasted for a week, the volume of applications for mortgages fell again, and the number of purchases slowed down.

The MBA Composite Market Index, which tracks application volume through a survey of participants, was down seasonally-adjusted 4% in the week ending June 16, compared with the previous period, which included a July 4 holiday. The unadjusted index rose 20% over the week. Volume adjusted seasonally was down 17.7% from the same week last year.

The activity fell on both purchases and refinancing. The refinancing index fell 3% from the previous week and was 18% lower than the same week in 2020. The seasonally adjusted buying index was down 6% over the week but rose 17% unadjusted. The unadjusted buying index was 18% lower than its level in the same week a year ago.

“On a seasonally adjusted basis compared to the July 4 holiday week, mortgage applications were lower across the board, with purchase applications back to their lowest level since May 2020,” said Joel Kahn, MBA’s deputy vice president of economic and sectoral forecasting. in a press statement. Limited inventory and high prices There were no potential buyers in the market, Kahn said.

Refinancing accounted for 64.9% of total applications, up from 64.1% in the previous reporting period. “Refinancing activity decreased over the week, but as rates remained relatively low, filing rates were close to their highest level since early May 2021,” Kahn said.

The share of applications for adjustable rate mortgages declined from the previous week, dropping two basis points to 3.3% from 3.5%.

The average loan size will decrease slightly, even if the volume of purchases exceeds $ 400,000 again.
The average mortgage application size decreased slightly – by 0.6% to $ 343,800 from $ 345,900 in the previous week. The average refinancing rate also declined, down 1.2% to $ 312,600 from $ 316,300 a week earlier. But the average purchase price of mortgages climbed above the $ 400,000 mark again, rising to $ 401,300 from $ 398,600 in the previous period, up 0.7%.

Applications from government-supported programs took more than a week compared to a week. Federal Housing Administration-sponsored mortgages accounted for 9.6% of the total, up from 9.5% in the previous week. Loans secured by the Veterans Administration accounted for 10.5% of all mortgage applications, up from 10.3% for the week, while the percentage of loans made through USDA programs remained unchanged at 0.5% …

30-year rate rises while others fall
News of coronavirus variants has shown that pandemic fears continue to play a large role in the mortgage market.

“The yield on 10-year Treasuries fell sharply last week, in part as investors became more worried about the spread of COVID-19 varieties and their impact on global economic growth,” Kahn said. result.”

  • The average interest rate on 30-year fixed rate mortgages with a corresponding loan balance of $ 548,250 or less rose weekly to 3.11% from 3.9%.
  • The contractual interest rate on 30-year large fixed-rate loans with balances over $ 548,250 fell three basis points to 3.13% from 3.16% a week earlier.
  • The average interest rate on FHA-backed 30-year fixed rate mortgages fell again, falling to 3.08% from 3.15% in the previous week.
  • The average interest rate on 15-year fixed rate mortgages also fell two basis points to 2.46% from 2.8% a week earlier.
  • The interest rate on 5/1 adjustable rate mortgages fell to 2.74% a week after rising to 3.02%.


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