Mortgage

Mortgage applications fall during last two weeks of 2021

Mortgage applications fall during last two weeks of 2021
Written by Publishing Team

Mortgage applications fell 2.7% on a seasonally adjusted basis during the last two weeks of 2021, while the 30-year average mortgage rose at a flat rate of six basis points to 3.33%, the highest level since April, the Mortgage Bankers Association said. , quoted by her. Composite market index.

The average contract interest rate for 30-year fixed rate mortgages backed by the Federal Housing Administration increased to 3.40% from 3.39%. The average contract interest rate for a 15-year mortgage was flat at 2.6%, while the average contract rate for a 30-year fixed-rate mortgage with a hefty loan balance of over $548,250 fell to 3.31% from 3.35%.

On an unadjusted basis, the Market Composite Index, which measures the volume of mortgage applications, was down 32%. Meanwhile, the refinancing index is down 2% from the previous two-week period and down 40% from the same week a year ago. The share of refinancing in mortgage activity increased to 65.4% of total applications from 63.9% in the previous week.

The seasonally adjusted purchasing index is down 4% from the past two weeks, while the unadjusted purchasing index is down 32% from the previous two weeks and is down 12% from a year ago.

“Mortgage rates have continued to rise over the past two weeks, as markets maintain an optimistic view of the economy,” said Joel Kahn, associate vice president of the Department of Economic and Industrial Business in a press release. “The public purchase market also finished slower, with the last week coming in at its weakest level since October 2021. Despite lower average loan volumes, house prices remain at very high levels.”

The share of adjustable rate mortgage activity fell to 3.3% of the total applications. The FHA’s share of total applications increased to 9.2% from 8.5% the previous week, while the VA’s share of applications decreased to 11.3% from 11.4%. The USDA share of orders settled at 0.4%.

“Despite supply and affordability challenges, 2021 was a record year for original purchases,” Kahn added. “The MBA expects 2022 to be even stronger, with total buying activity reaching $1.74 trillion.”

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