Skip to main content

Purchase Activity Offsets Refi Decline In Mortgage Apps

Navi Persaud
Oct 13, 2021
Photo of a mortgage application on a coffee table. Credit: iStockphoto.com/courtneyk.

The Mortgage Bankers Association's latest Weekly Mortgage Application Survey reported a slight increase in mortgage applications for the week ending Oct. 8, 2021.

Mortgage applications increased 0.2% from the previous week according to the MBA's Market Composite Index. The Refinance Index, however, saw a 1% decline from the previous week and was 16% lower year-over-year. Meanwhile, the seasonally adjusted Purchase Index increased 2%. Despite the increase in purchase activity, purchases remain 10% lower year-over-year.

“Mortgage rates reached their highest level since June 2021, but application activity changed little this week. An increase in home purchase applications offset a slight decline in refinances,” said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. “The increase in purchase applications was welcome news, but was primarily driven by a 2% gain in conventional purchase applications, which kept the average loan size elevated.”    

“The 30-year fixed-rate reached 3.18% last week and has risen 15 basis points over the past month, resulting in an 11% drop in refinance applications during this time. Government refinance applications fell over 3% last week, driven by a decline in FHA refinances and an 8-basis-point increase in the average FHA mortgage rate. We continue to expect weakening refinance activity as rates move higher and borrowers see less of a rate incentive.”

Additionally, the refinance share of mortgage applications decreased to 63.9% of total applications from 64.5% the previous week. The adjustable-rate mortgage share of activity remained unchanged at 3.4% of total applications, according to the MBA's report.  

The FHA share of total applications decreased to 10.2% from 10.5% the week prior. The VA share of total applications decreased to 10.2% from 10.3% the week prior. The USDA share of total applications decreased to 0.4% from 0.5% the week prior.

Published
Oct 13, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021