Refi Requests Decline, While Conventional and FHA Mortgages Rise – RISMedia |

According to the Mortgage Bankers Association’s (MBA) latest weekly mortgage application survey for the week ending August 20, 2021, mortgage applications were up 1.6% from the previous week.

The Composite Market Index, a measure of mortgage application volume, rose 1.6% on a seasonally adjusted basis from the previous week.

The results:

– Unadjusted, the index increased by 1% compared to the previous week.

– The refinancing index increased 1% from the previous week and was 3% higher year on year.

– The seasonally adjusted purchasing index increased by 3% compared to the previous week.

– The unadjusted purchase index increased 1% from the previous week and was 16% lower year-on-year.

Takeaway meals:

Refinancing takes a back seat and requests for FHA mortgages are on the rise.

“T-bill yields fell last week, as investors continue to anxiously watch whether rising COVID-19 cases in several states begin to dampen economic activity. Mortgage rates fell slightly as a result, with the 30-year fixed rate falling for the first time in three weeks. The drop in rates has led to an increase in refinancing requests, as government loan requests jumped 10% to the highest level since May 2021, ”said Joel Kan, associate vice president of economic and industrial forecasting at MBA , in a press release.

“Purchase requests for conventional and government loans have also increased,” Kan added. “The buying index was at its highest level since early July, although it continues to lag behind 2020. There has also been some easing in the average loan amount, which is potentially a sign that more first-time buyers looking for cheaper homes are being helped by the recent increase in inventory for sale for both newly built and existing homes.

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