Mortgage Applications Dip Amid Higher Rates

Mortgage applications decreased slightly last week, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey released Wednesday.

Applications decreased 1.9 percent for the week. Refinances decreased by 5 percent from the previous week but were 87 percent higher than the same week a year ago. Purchase applications increased 9 percent over the previous week and was 15 percent higher than last year.

The refinance share of mortgage activity decreased to 72.3 percent of total applications from 74.8 percent the previous week. The adjustable-rate mortgage share of activity increased to 2.1 percent of total applications.

“Purchase applications remained strong based on current housing demand, rising over the week and up a noteworthy 15 percent from last year,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “Homebuyers in early 2021 continue to seek newer, larger homes. The average loan size for purchase loans jumped to $384,000, the second highest level in the survey.”