MBA Weekly Applications Survey Dec. 15, 2021: Refis Continue Steady Decline

Mortgage applications fell from one week earlier despite key interest rates holding steady, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending December 10. 

The Market Composite Index fell by 4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 6 percent from the previous week. 

The unadjusted Refinance Index decreased by 6 percent from the previous week and was 41 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 63.3 percent of total applications from 63.9 percent the previous week.

The seasonally adjusted Purchase Index increased by 1 percent from one week earlier. The unadjusted Purchase Index decreased by 4 percent from the previous week and was 9 percent lower than the same week one year ago.

The FHA share of total applications decreased to 9.6 percent from 9.9 percent the week prior. The VA share of total applications decreased to 10.6 percent from 10.7 percent the week prior. The USDA share of total applications remained unchanged from 0.5 percent the week prior.

“Fewer homeowners have a strong incentive to refinance at current rates,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Purchase activity increased slightly, as a 1.7 percent rise in conventional applications offset a 1.6 percent decline in applications for government loans. The strength in conventional purchase activity continues to support higher loan balances, which moved back over $400,000. Housing demand remains strong as the year comes to an end amidst tight inventory and steep home-price growth.”

MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) unchanged at 3.30 percent, with points unchanged at 0.39 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.32 percent from 3.33 percent, with points unchanged at 0.30 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA increased to 3.37 percent from 3.35 percent, with points increasing to 0.34 from 0.32 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.58 percent from 2.62 percent, with points increasing to 0.34 from 0.31 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 2.75 percent from 2.98 percent, with points increasing to 0.28 from 0.21 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity increased to 3.4 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

Please Note: MBA offices will be closed Friday, December 24 and will reopen on Monday, January 3, 2022. Due to the holiday, the results for weeks ending December 24 and December 31 will be released on January 5, 2022.