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 Prospect Park West and 2 Northside Piers in Williamsburg (Photos via Google Maps and 2 Northside Piers/Facebook)
    A Park Slope co-op was one of the priciest deals inked last week
    A Park Slope co-op was one of the priciest deals inked last week
    42 Old Montauk Highway, Montauk
    The unsellables: Even in a hot market, these Hamptons homes don’t move
    The unsellables: Even in a hot market, these Hamptons homes don’t move
    220 Central Park South with Michael Cantanucci and 378 West End Avenue (Photos via Getty Images, Jim.henderson/Wikimedia, 378WEA)
    Discounts for Manhattan’s luxury homes have shrunk
    Discounts for Manhattan’s luxury homes have shrunk
    Gov. Andrew Cuomo (Getty/Illustration by Kevin Rebong)
    NY flooded with nearly 100K rent relief applications in two weeks
    NY flooded with nearly 100K rent relief applications in two weeks
    Sweden is one of the countries most at risk (Getty)
    Here are the countries most at risk of a housing bubble
    Here are the countries most at risk of a housing bubble
    Los Angeles, New York and Miami metro areas are in the top 10 of owner-occupied million dollar homes. (iStock)
    These metro areas have the most — and fewest — million-dollar homes
    These metro areas have the most — and fewest — million-dollar homes
    A closer look at Compass’ trail of litigation over its business tactics
    A closer look at Compass’ trail of litigation over its business tactics
    A closer look at Compass’ trail of litigation over its business tactics
    Salesforce CEO Marc Benioff and Amazon's Jeff Bezos are backing the startup (Getty, Arrived)
    Bezos-backed Arrived Homes is latest startup to expand real estate investment
    Bezos-backed Arrived Homes is latest startup to expand real estate investment
    arrow_forward_ios

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

    Loading...