Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 10
According to recent data from the Mortgage Bankers Association (MBA) mortgage applications have been decreasing week over week.
For the week ending August 27, 2021, the seasonally adjusted basis mortgage loan applications decreased by 2.4%, and 3% on an unadjusted basis, revealed the MBA data.
Compared to the previous week MBA’s refinance index saw a 4% decrease even if was 2% higher than the same week in 2020.
Associate vice president of economic and industry forecasting at MBA, Joel Kan, noted that applications fell even while the mortgage rates changed only minutely.
Mortgage rates barely moved last week, the 30-year fixed remained at 3.03%, and in spite of these low rates, refinance applications slipped, some borrowers are waiting for the rates to drop further.
The pandemic and uncertainty in the economy have been keeping the rates low resulting in the refinance index oscillating around these levels.
Of total applications, the refinance share of mortgage activity decreased from 67.3% last week to 66.8% of total applications, and the adjustable-rate mortgage (ARM) share of activity increased to 3.2% of total applications.
The FHA share of total applications rose from 11.0% to 11.2%, whereas the VA share of total applications decreased to 9.7% from 10.0%.
Meanwhile, the USDA share of total applications increased from 0.4% last week to 0.5%.
Home purchase activity continues to roar in the market, the purchase average loan size now is $396,500, which is the highest average in five weeks.
FHFA data showed June’s increase in home prices was 18.8%, whereas there was a 17.4% increase overall in the second quarter.
Reference Source: MPA
