Real Estate

Mortgage Applications Down, With Refis Reaching Lowest Level in 3 Months — RISMedia |

Mortgage applications decreased 6.9 percent for the week ending October 1, 2021, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

The details:

– The Market Composite Index decreased 6.9% on a seasonally adjusted basis from one week earlier.
– On an unadjusted basis, the index decreased 7% compared with the previous week. – The Refinance Index decreased 10% from the previous week.
– The seasonally adjusted Purchase Index decreased 2% from the previous week.
– The unadjusted Purchase Index decreased 2% compared to the previous week.

The takeaway:

“Mortgage applications to refinance dropped almost 10% last week to the lowest level in three months, as the 30-year fixed rate increased to 3.14%—the highest since July. Higher rates are reducing borrowers’ incentive to refinance, as declines were seen across all loan types,” said Joel Kan, MBA’s Associate vice president of Economic and Industry Forecasting, in a statement. “Purchase activity also fell, driven by a drop in conventional loan applications. Government purchase applications were up over 1%, but that was still not enough to bring down the average loan balance of $410,000. With home-price appreciation and sales prices remaining very elevated, applications for higher balance, conventional loans still dominate the mix of activity.”

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