by Calculated Risk on 8/04/2021 07:00:00 AM
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending July 30, 2021.
… The Refinance Index decreased 2 percent from the previous
week and was 3 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 2 percent
compared with the previous week and was 18 percent lower than the same week one year ago.
“Interest rates drifted lower globally last week, as markets assessed the latest concerns regarding the
delta variant. 30-year mortgage rates dropped below 3 percent in our survey for the first time since this
February, presenting an opportunity for many homeowners who have not yet refinanced to lower their rate
and their payments. Refinance application volume slightly decreased, following an 11 percent jump last
week,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Purchase application
volume decreased again, reflecting the ongoing lack of inventory that continues to drive rapid home-price
appreciation across the country.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($548,250 or less) decreased to 2.97 percent from 3.01 percent, with points decreasing to 0.33 from 0.34
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.
With low rates, the index remains elevated.
The second graph shows the MBA mortgage purchase index
Note: The year ago comparisons for the unadjusted purchase index are now difficult since purchase activity picked up in late May 2020.