Skip to main content

Lack Of Homes And High Home Prices Drive Mortgage Apps Down More Than 4 Percent

Navi Persaud
May 26, 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 reported a 4.2% decrease in mortgage applications for the week ending May 21, 2021. On an unadjusted basis, the Market Composite Index fell by 4%.

"Mortgage applications decreased last week as mortgage rates increased to 3.18%. Refinances dropped 7% as a result, driven by declines in both conventional and government refinance activity," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. "Purchase applications increased for the second time in three weeks, rebounding after a rather weak April with mostly weekly declines. While purchase activity was around 4% lower than a year ago, the comparison is to last spring's large upswing in activity as pandemic-related lockdowns lifted. Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices."

According to the MBA's survey, the Refinance Index decreased by 7% and was 9% lower year-over-year. Meanwhile, the seasonally adjusted Purchase Index increased 2%, however, it is down 4% year-over-year.

The refinance share of mortgage activity decreased from 63.3% to 61.4%, the adjustable-rate mortgage share of activity increased to 4% of total applications and the FHA share of total applications decreased slightly to 9.1%. Additionally, the VA share of total applications decreased 11.2% and the USDA share of mortgage activity held stagnant at 0.4%.

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

May 26, 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