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Data from Mortgage Bankers Association’s Weekly Mortgage Application Survey revealed that mortgage applications increased 8.6% in one week, on a seasonally adjusted basis, for the week ending April 16, 2021. The Market Composite Index shows the index increases 9% on an adjusted basis compared to the previous week.
The Refinance Index increased 10% from the previous week but was 23% lower than the same week one year ago. The refinance share of mortgage activity increased to 60.5% of total applications, which is 0.8% higher than the previous week.
The Federal Housing Administration share of total applications increased 11.3%, which is 0.5% higher than the previous week. However, the VA share of total applications decreased by 0.6% from the week prior to 11.5%, and the USDA application volume remained unchanged at 0.4%.
"Mortgage rates dropped to their lowest levels in around two months, prompting a small resurgence in refinance activity after six weeks of declines,” explained Joel Kan, MBA's associate vice president of economic and industry forecasting. “Borrowers acted on the decrease in rates for most loan types, with both conventional and government refinance applications showing gains."
The unadjusted Purchase Index increased 7% from the previous week, and was 57% higher than the same week a year ago.
"The average loan size for purchase applications increased after a few weeks of declines, as fewer homes available for sale make for a competitive buying market that is accelerating home-price growth," added Kan.
Click here to read more from the MBA's WMAS.