Skip to main content

MBA: 'All Loan Types Hit Highest Levels In Two Weeks'

Navi Persaud
May 20, 2021
the Federal Housing Finance Agency (FHFA) reported home prices in November were up 0.4 percent from October and up 5.8 percent from one year earlier

The Mortgage Bankers Association's Weekly Mortgage Application Survey for the week ending May 14, 2021, reported a 1.2% increase in mortgage applications from the previous week. The report also highlighted that all loan types have hit their highest levels in two weeks.

The Refinance Index increased 4% from the previous week and was just 2% lower than the same week in 2021. The seasonally adjusted Purchase Index decreased 4% this week but was 2% higher year-over-year.

"Mortgage rates increased last week, with all loan types hitting their highest levels in two weeks. Rates were still lower than levels reported in late March and early April, providing additional opportunity for borrowers to refinance. Despite the 30-year fixed rate rising to 3.15%, applications for conventional and VA refinances increased. Ongoing volatility in refinance applications is likely if rates continue to oscillate around current levels," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. "A decline in purchase applications was seen for both conventional and government loans. There continues to be strong demand for buying a home, but persistent supply shortages are constraining purchase activity, and building material shortages and higher costs are making it more difficult to increase supply. As a result, home prices and average purchase loan balances continue to rise, with the average purchase application reaching $411,400 - the highest since February."

Additionally, the refinance share of mortgage activity increased from 61.3% to 63.3% of total applications and the adjustable-rate mortgage share of activity increased to 3.9% of total applications. The FHA share of total applications decreased to 9.2%, the VA share increased slightly to 12% and the USDA share of total applications decreased slightly to 0.4%.

Click here to read more from the MBA's WMAS.

Published
May 20, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021