MBA Weekly Applications Survey Nov. 17, 2021: Refis Fall for 7th Time in 8 Weeks

Mortgage applications fell by nearly 3 percent from one week earlier as interest rates crept higher, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending November 12. 

The Market Composite Index fell by 2.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 4 percent from the previous week. 

The unadjusted Refinance Index decreased by 5 percent from the previous week and was 31 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 62.9 percent of total applications from 63.5 percent the previous week.

The seasonally adjusted Purchase Index increased by 2 percent from one week earlier. The unadjusted Purchase Index decreased by 2 percent from the previous week and was 6 percent lower than the same week one year ago.

The FHA share of total applications increased to 8.9 percent from 8.8 percent the week prior. The VA share of total applications increased to 10.8 percent from 10.2 percent the week prior. The USDA share of total applications remained unchanged from 0.5 percent the week prior.

“Refinance applications decreased for the seventh time in eight weeks, as mortgage rates moved higher after two weeks of declines.” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Activity has been particularly sensitive to rate movements, and last week’s decline was driven by a drop in conventional and FHA refinance applications, which offset an increase in VA refinance applications. All mortgage rates in MBA’s survey increased, with the 30-year fixed rate climbing to 3.2 percent.”

Kan noted purchase applications increased for both conventional and government loan segments, as housing demand continues to show resiliency at a time when home buying activity typically slows. “The second straight increase in purchase applications suggests that stronger sales activity may continue in the weeks to come,” he said. “Despite elevated demand, purchase applications were 5.7 percent lower than a year ago.”

MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.20 percent from 3.16 percent, with points increasing to 0.43 from 0.34 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) remained unchanged at 3.26 percent, with points increasing to 0.39 from 0.32 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA increased to 3.23 percent from 3.18 percent, with points increasing to 0.41 from 0.31 (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 increased to 2.56 percent from 2.52 percent, with points increasing to 0.36 from 0.33 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages increased to 2.89 percent from 2.82 percent, with points decreasing to 0.16 from 0.25 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity increased to 3.2 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.