Mortgage applications drop 4% – HousingWire

After two straight weeks of increases, mortgage applications fell 4.2% for the week ending May 21, 2021, according to the Mortgage Bankers Associationweekly mortgage application survey.

“Demand is strong across the country, but homebuyers continue to be held back by a shortage of homes to sell and rapidly rising home prices,” said Joel Kan, associate vice president of economic forecasting. and industrial MBA.

Kan noted that refinancing has also declined – 7% and 9% less year-over-year – due to the decline in both conventional and government refinancing activity.

“And purchase requests increased for the second time in three weeks, rebounding from a rather weak April with mostly weekly declines,” he said. “While purchasing activity was around 4% lower than a year ago, the comparison relates to the strong resumption of activity last spring, with the lifting of lockdowns linked to the pandemic. “

After hovering below 3% for a month, the 30-year average fixed mortgage rate climbed six basis points to exactly 3% last week. Rates climbed north of 3% in the first few months of 2021, but hit 3.2% in March before dropping back down.

The refinancing share of the activity fell to 61.4% of total mortgage loan applications against 63.3% the previous week. the FHA the share of total mortgage applications fell to 9.1% from 9.2% the week before. the Virginia the share of total requests increased from 12% to 11.2%.

Here’s a more detailed breakdown of this week’s mortgage application data:

  • The average contract interest rate for 30-year fixed rate mortgages with compliant loan balances ($ 548,250 or less) fell from 3.15% to 3.18%.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (above $ 548,250) fell from 3.31% to 3.30%.
  • Average contract interest rate for 30-year fixed-rate mortgages increased from 3.20% to 3.20%
  • The average contract interest rate for 15-year fixed-rate mortgages fell from 2.54% to 2.53%.
  • Average contract interest rate for 5/1 ARMs increased from 2.58% to 2.81%

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