Refi Purposes Take Again Seat, Whereas Typical and FHA Mortgages Improve — RISMedia |
Mortgage applications were up 1.6% from a week earlier, according to the latest Mortgage Bankers Association (MBA) weekly survey of mortgage applications for the week ending August 20, 2021.
The Market Composite Index, a measure of the volume of mortgage loan applications, rose by a seasonally adjusted 1.6% compared to the previous week.
– Unadjusted, the index rose 1% compared to the previous week.
– The refinancing index rose 1% compared to the previous week and was 3% higher year-on-year.
– The seasonally adjusted purchasing index rose by 3% compared to a week earlier.
– The unadjusted purchasing index increased by 1% compared to the previous week and was 16% lower than the previous year.
Refinancing is taking a back seat and FHA mortgage applications are on the rise.
“Government bond yields fell last week as investors continue to watch with fears as the surge in COVID-19 cases begins to slow economic activity in several states. As a result, mortgage rates fell slightly, with the 30-year fixed interest rate falling for the first time in three weeks. Lower interest rates resulted in a surge in refinancing requests, with government loan requests increasing 10% to their highest level since May 2021, ”said Joel Kan, associate vice president of economic and industry forecasting at MBA, in a statement.
“Purchase requests for conventional and government loans have also increased,” added Kan. “The purchase index was at its highest level since the beginning of July, although it still lags behind the 2020 pace. There has also been some easing in average loan sizes, which may be a sign that more first-time buyers looking for lower-priced homes are being helped by the recent surge in inventory for sale for both newly built and existing homes.