Frenzy ending? Mortgage requests fall 5%

Drop in applications follows two weeks of smaller declines

National /
Apr.April 07, 2021 11:30 AM
An index tracking applications for mortgages to purchase homes decreased 5 percent. (iStock)

An index tracking applications for mortgages to purchase homes decreased 5 percent. (iStock)

Spring is usually when the housing market heats up. But after months of frenzied buying comes a sign that it might finally be slowing down.

An index tracking applications for mortgages to purchase homes decreased 5 percent, seasonally adjusted, from the previous week, according to the Mortgage Bankers Association. That follows two weeks of slight decreases.

The index is still 51 percent higher than it was a year ago, in the early days of the pandemic.

“The rapidly recovering economy and improving job market is generating sizeable home buying demand, but activity in recent weeks is constrained by quicker home-price growth and extremely low inventory,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

Buyers have been rushing to purchase, leaving hesitant shoppers in the dust. Redfin data shows that sellers of 59 percent of homes in contract last month had accepted offers within two weeks of listing — an all-time high. And bidding wars pushed the average sale price just above asking.

With interest rates having risen recently, MBA’s refinance index also decreased 5 percent from the previous week and was 20 percent lower than the same week one year ago. Refinances made up 60.3 percent of applications and the average refinancing loan was $272,100, down from last week’s $275,000.

“Overall, refinance demand has decreased, with volume over the past 10 weeks down by more
than 30 percent,” Kan said.

The average purchase loan decreased to $399,500 from last week’s $401,400.

The average contract interest rate for 30-year fixed-rate mortgages increased to 3.36 percent from 3.33 percent, while jumbo loans increased to 3.41 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
    Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
    Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
    Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
    (iStock)
    Home prices across globe hit records, prompting worries of bubble
    Home prices across globe hit records, prompting worries of bubble
    Steven and Beth Millner with One Thousand Ocean (Patrick McMullan/Getty, Google Maps)
    Private equity honcho pays $5M for Boca Raton condo
    Private equity honcho pays $5M for Boca Raton condo
    From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    Kathleen DuRoss Ford and 300 North Lake Way (Getty, Google Maps)
    Kate Ford’s Palm Beach estate sells for $55M
    Kate Ford’s Palm Beach estate sells for $55M
    Lennar Executive Chairman Stuart Miller (iStock)
    “The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
    “The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
    Rent-to-own startup Divvy Homes expands to South Florida
    Rent-to-own startup Divvy Homes expands to South Florida
    Rent-to-own startup Divvy Homes expands to South Florida
    Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)
    Knock expands home lending program into South Florida 
    Knock expands home lending program into South Florida 
    arrow_forward_ios

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

    Loading...