Mortgage Applications Decrease in Latest MBA Weekly Survey

WASHINGTON, D.C. (November 3, 2021) - Mortgage applications decreased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 29, 2021. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4 percent compared with the previous week. The Refinance Index decreased 4 percent from the previous week and was 33 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 3 percent compared with the previous week and was 9 percent lower than the same week one year ago.  

"Mortgage rates decreased for the first time since August, as concerns about supply-chain bottlenecks, waning consumer confidence, weaker economic growth, and rising inflation pushed Treasury yields lower. Most of the decline in rates came later in the week, which is likely why refinance applications declined to the lowest level since January 2020, and the overall share of activity fell to the lowest since July 2021," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Government refinance applications fell for the sixth straight week, as it becomes evident that an increasing number of borrowers have already refinanced."  

Added Kan, "Purchase activity continues to be held back by high prices and low for-sale inventory, but current applications levels still point to healthy housing demand. MBA is forecasting for a record $1.6 trillion in purchase mortgage originations this year, and sustained demand leading to another record year in 2022."     

The refinance share of mortgage activity decreased to 61.9 percent of total applications from 62.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.2 percent of total applications.  

The FHA share of total applications decreased to 9.2 percent from 10.4 percent the week prior. The VA share of total applications decreased to 9.9 percent from 10.6 percent the week prior. The USDA share of total applications remained unchanged from 0.5 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.24 percent from 3.30 percent, with points remaining unchanged at  0.34 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.29 percent from 3.34 percent, with points decreasing to 0.27 from 0.29 (including the 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 the FHA decreased to 3.29 percent from 3.31 percent, with points remaining unchanged at 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.58 percent from 2.59 percent, with points decreasing to 0.29 from 0.33 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 5/1 ARMs decreased to 2.88 percent from 2.89 percent, with points decreasing to 0.11 from 0.13 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.   

If you would like to purchase a subscription of MBA's Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact [email protected] or click here.  

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.