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The Mortgage Bankers Association's Weekly Mortgage Application Survey reported a 5.1% decline in mortgage applications for the week ending April 2, 2021. On an unadjusted basis, the Market Composite Index decreased by 5%.
According to the report, the Refinance Index decreased by 5% and was 20% lower year-over-year. Meanwhile, the seasonally adjusted Purchase Index decreased by 5% and 4% on an unadjusted basis. However, purchases were still 51% higher year-over-year.
"Mortgage rates resumed their upward move last week, with the 30-year fixed-rate at 3.36%. The return of rates to the highest level since last June contributed to a slowdown in applications for both purchases and refinances. The rapidly recovering economy and improving job market is generating sizeable home buying demand, but activity in recent weeks is constrained by quicker home-price growth and extremely low inventory," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. "Refinance applications declined for the fifth straight week, but there was a gain in VA loan activity. Overall, refinance demand has decreased, with volume over the past 10 weeks down by more than 30%."
The refinance share of mortgage activity decreased slightly to 60.3% down from 60.6% from the previous week and the adjustable-rate mortgage share of activity increased to 3.7% of total applications. Additionally, the FHA share of total applications decreased to 10.2% from 11.3% the previous week, the VA share of total applications increased to 13.8% and the USDA share of total applications increased to 0.5% from 0.4% the previous week.
Click here to read more from the MBA's WMAS.