Skip to main content

Mortgage Applications Drop As Concerns Of COVID Variants Increase

Jul 22, 2021
​American Financial Resources Inc. (AFR) has announced that it will be launching MyLoanCenter,
Director of Events

The Mortgage Bankers Association's Weekly Mortgage Application Survey reported a 4% decline in mortgage applications from the previous for the week ending July 16, 2021.

KEY TAKEAWAYS
  • The Market Composite Index decreased by 4%.
  • The Refinance Index is down 3%.
  • The seasonally adjusted Purchase Index declined by 6%.

The Mortgage Bankers Association's Weekly Mortgage Application Survey reported a 4% decline in mortgage applications from the previous week, for the week ending July 16, 2021.

Additionally, the MBA's survey reported that the Refinance Index fell by 3% from the previous week and the seasonally adjusted Purchase Index decreased by 6% from the previous week. The unadjusted Purchase Index was 18% lower year-over-year, which comes as no surprise with new home purchase applications falling almost 24% as reported yesterday.

Despite the world seemingly making headway in the fight against the COVID-19 virus, the rapidly spreading variants are causing concern when it comes to the possible impacts on the global economic recovery. 

“The 10-year Treasury yield dropped sharply last week, in part due to investors becoming more concerned about the spread of COVID variants and their impact on global economic growth. There were mixed changes in mortgage rates as a result, with the 30-year fixed rate increasing slightly to 3.11% after two weeks of declines. Other surveyed rates moved lower, with the 15-year fixed rate loan, used by around 20% of refinance borrowers, decreasing to 2.46% - the lowest level since January 2021,” said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. “On a seasonally adjusted basis compared to the July 4th holiday week, mortgage applications were lower across the board, with purchase applications back to near their lowest levels since May 2020. Limited inventory and higher prices are keeping some prospective homebuyers out of the market. Refinance activity fell over the week, but because rates have stayed relatively low, the pace of applications was close to its highest level since early May.”   

Meanwhile, the refinance share of mortgage activity increased to 64.9% of total applications, the adjustable-rate mortgage share of activity decreased to 3.3% and the FHA share increased very slightly from 9.5% to 9.6% from the previous week, according to the survey. 

The VA share of total applications increased from 10.3% to 10.5% and the USDA share of total applications was unchanged.

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Jul 22, 2021
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Housing Correction Gathers Momentum as Supply Surges, Affordability Pressures Persist

ICE Spotlights Emerging Risks, Market Realignment in Monthly Mortgage Landscape Look

Jul 08, 2025
Spike In Homeowners At Risk Of Selling At A Loss

Post-pandemic homebuyers are greatest risk of losing money in a sale, report finds, but results vary by location

Jul 07, 2025
Another Home Insurance Crisis Brewing?

Homeowners delaying major repair work — or doing the work themselves instead of hiring professional tradesmen

Jul 07, 2025
The Truth About 20% Down

Report examines home down payments and where they’re sourced

Jul 03, 2025
Loan Fraud Up a Staggering 407%

The same tech that’s advancing the mortgage industry is being used to create scams, drive fraud

Jul 02, 2025