Mortgage applications resume decline after one-week surge

MBA index’s 5% plunge is fourth drop in past five weeks

National /
Apr.April 28, 2021 10:59 AM
(Getty)

(Getty)

The number of mortgage applications is fluctuating but trending downward as buyers try to decide whether now’s the right time to purchase a home.

After ticking up the previous week, the Mortgage Bankers Association index tracking requests for home-purchase loans fell 5 percent for the week ending April 23.

“Activity is still above year-ago levels, but accelerating home-price growth and low inventory has led to a decline in purchase applications in four of the last five weeks,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

The trade group’s refinance index fell 1 percent despite mortgage rates dropping for the third consecutive week.

Refinance requests made up 60.6 percent of total applications, virtually unchanged from the previous week. The average refinancing loan size was $284,300, up from $279,500.

“Even with a few weeks of lower rates, most borrowers have likely already refinanced, which is why activity has decreased in seven of the last eight weeks,” said Kan.

The average purchase loan request was $400,100, a dip from the prior week’s $406,100.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.17 percent from 3.20 percent. Jumbo loans fell to 3.28 percent from 3.34 percent.

MBA’s survey covers 75 percent of the residential mortgage market and has been conducted weekly since 1990.





    Related Articles

    arrow_forward_ios
     9 Olde Towne Lane
    Southampton home in exclusive enclave sells for $34.5M
    Southampton home in exclusive enclave sells for $34.5M
    Carl Liebert, CEO of kwx and Marc King, president of Keller Williams (V Foundation, Keller Williams)
    Keller Williams has its best Q1 ever with $98B in sales
    Keller Williams has its best Q1 ever with $98B in sales
    Better.com CEO Vishal Garg (Better.com, iStock)
    Mortgage lender Better to go public via SPAC merger
    Mortgage lender Better to go public via SPAC merger
    The Penthouse at 60 Broadway in Williamsburg. (Compass)
    Brooklyn sees 41 luxury deals inked last week
    Brooklyn sees 41 luxury deals inked last week
    26 Bank Street and Connie Milstein (Google Maps)
    Connie Milstein’s $20M West Village townhouse tops Manhattan contracts
    Connie Milstein’s $20M West Village townhouse tops Manhattan contracts
    (iStock)
    Drop in home refinancing crimps mortgage firms’ profits
    Drop in home refinancing crimps mortgage firms’ profits
    Douglas Elliman's Scott Durkin and Connie Mui-Reilly (Douglas Elliman, iStock)
    Elliman launches portal to streamline agent resources
    Elliman launches portal to streamline agent resources
    The reopening of NYC has created a surge of demand for apartments. (Getty)
    Reopening sparks signs of a real estate rush
    Reopening sparks signs of a real estate rush
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...