Business & Investment

Mortgage applications declined in latest weekly survey

Along Calculated risk of 1/27/2021 07:00:00 AM

From MBA: The latest MBA weekly survey shows fewer mortgage applications

Mortgage applications fell 4.1% from a week ago, according to data from the Weekly Mortgage Bankers Association (MBA) Weekly Mortgage Application Survey, which ends January 22, 2021.

… the refinancing index was down 5% from the previous week and 83% higher than the same week a year ago. The seasonally adjusted purchase index is down 4% from a week ago. Unadjusted purchase index increased by 3% compared to last week 16 percent higher than the same week a year ago..

“Last week mortgage rates were mixed, with 30-year fixed rates rising to 2.95%, the highest level since November 2020, and all other interest rates in the survey falling. Borrowers to higher rates. As a sign of increasing sensitivity, a significant decline in government purchase and refinancing applications has reduced overall activity. The refinancing index has fallen for the second straight week, but is still 83% higher than last year. “We do,” said Joel Kan, vice president of economics and industry forecasting at MBA. “Although purchase applications declined last week, the striking trend of year-over-year growth since the second half of 2020 continues until early 2021. Activity has increased 16% year-on-year, with average purchase loan amounts hitting record highs. Maximum $ 395,200. Average purchase loan amount has increased steadily since reaching the recent minimum level in April 2020. This is due to strong demand and very low inventory levels. This is consistent with the accelerating rise in home prices in most of the countries. “

The average contract interest rate (less than $ 510,400) for a 30-year fixed rate mortgage with a matching loan balance has risen from 2.92% to 2.95%, up from an 80% loan-to-value of 0.37 (including origination fees) to 0.32. The points have dropped. Value Ratio (LTV) loan.
Emphasis added

Click the graph to see the enlarged image.

The first graph shows the refinancing index since 1990.

The refinancing index has recently fluctuated in response to interest rates.

With near record low interest rates, the index has continued to rise significantly since last year.

Mortgage Purchase Index

The second graph shows the MBA Mortgage Purchase Index

According to the MBA, purchasing activity is unadjusted and is up 16% year-on-year.

Note: Red is a 4-week average (blue is weekly).

Mortgage applications declined in latest weekly survey Mortgage applications declined in latest weekly survey

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