MBA: Mortgage Applications Fall To Lowest Level Since Mid-July

Mortgage applications decreased 1.9% from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending Sept. 3, 2021.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.9% on a seasonally adjusted basis from one week earlier. The Refinance Index decreased 3% from the previous week and was 4% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 0.2% from one week earlier. The unadjusted Purchase Index decreased 3% compared with the previous week and was 18% lower than the same week one year ago. 

"Mortgage application volume fell last week to its lowest level since mid-July, as mortgage rates have stayed just above 3% for several weeks.,” said Mike Fratantoni, MBA's senior vice president and chief economist. “Refinance volume has been moderating, while purchase volume continues to be lower than expected given the lack of homes on the market."

He added that recent economic data has sent “mixed signals, with slower job growth but a further drop in the unemployment rate in August. We expect that further improvements will lead to a tapering of Fed MBS purchases by the end of the year, which should put some upward pressure on mortgage rates." 

The refinance share of mortgage activity remained unchanged from the previous week at 66.8% of total applications. The adjustable-rate mortgage share of activity decreased to 2.5% of total applications. 

The FHA share of total applications decreased to 10.9% from 11.2% the week prior. The VA share of total applications increased to 10.4% from 9.7% the week prior. The USDA share of total applications remained unchanged from 0.5% the week prior.

To read the full report, visit www.mba.org.