Mortgage Applications Relatively Flat

David Deem
714-997-3486
Dave@DeemTeam.com

Mortgage applications increased 0.2% for the week ending Oct. 8, 2021. According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, the Market Composite Index, a measure of mortgage loan application volume, increased 0.2% on a seasonally adjusted basis from the previous week.

 
Unadjusted, the Index increased 0.4% compared to the previous week. The Refinance Index decreased 1% from the previous week—16% lower YoY. The seasonally adjusted Purchase Index increased 2% from the previous week. The unadjusted Purchase Index increased 2% compared with the previous week—10% lower than the same week one year ago.
 
Additional details:
 
- The refi share of mortgage activity decreased to 63.9% of total applications.
 
- The adjustable-rate mortgage (ARM) share of activity remained unchanged at 3.4% of total applications.
 
- The FHA share of total applications decreased to 10.2%.
 
- The VA share of total applications decreased to 10.2%.
 
- The USDA share of total applications decreased to 0.4%.
 
The takeaway:
 
"Mortgage rates reached their highest level since June 2021, but application activity changed little this week. An increase in home purchase applications offset a slight decline in refinances," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting, in a statement. "The increase in purchase applications was welcome news, but was primarily driven by a 2% gain in conventional purchase applications, which kept the average loan size elevated."  
 
 "The 30-year fixed rate reached 3.18% last week and has risen 15 basis points over the past month, resulting in an 11% drop in refinance applications during this time," added Kan. "Government refinance applications fell over 3% last week, driven by a decline in FHA refinances and an eight-basis-point increase in the average FHA mortgage rate. We continue to expect weakening refinance activity as rates move higher and borrowers see less of a rate incentive."

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Location: Orange, CA, USA

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