Total Mortgage demand fell 3.9% from one week earlier, according to data from the Mortgage Bankers Association’s weekly survey for the week ending August 13, 2021… (MBA)
- REFI: The Refinance Index fell 5% from the previous week and was 8 percent lower than the same week one year ago.
- PURCHASE: The Purchase Index fell 2% from the previous week and was 19% lower than the same week one year ago.
NOTE: With the drop in refi demand, the refinance share of mortgage activity decreased to 67.3% from 68.0% the previous week.
Mortgage rates continued their climb upward broaching the 3% threshold for the first time since July…
- 30-YR FIXED: The average contract interest rate increased 7 basis points to 3.06% but it was still down from the same time one year ago (3.13%).
- 15-YR FIXED: The average contract interest rate increased 6 basis points to 2.45% but was still down from the same time one year ago (2.73%)
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said that despite the second weekly decrease in demand the market is still hot…
- “Despite a second-straight weekly decrease, average loan sizes remain close to record highs. This is a continuing sign that sales prices are still elevated, driven by stiff competition leading to accelerating home-price growth.”