Mortgage Purchasing Activity Strengthens

The latest Mortgage Bankers Association’s (MBA) weekly application surveys shows a decline for refinancing and an increase for mortgage purchase loans.

According to Eye On Housing, the 30-year fixed-rate mortgage rate increased, averaging close to 3.3 percent for the month and was 3.27 percent for the week ending December 17. In the latest week, total mortgage applications, as proxied by the MBA’s Market Composite Index, decreased by 0.1 percent from the prior week, with the decline caused by a drop in refinancing.

While purchasing activity decreased by 3.3 percent , the past four weeks’ averaged activity is stronger than in weeks prior. And while homebuying has been modestly rising since the end of July, the current activity has yet to reach the levels seen at the beginning of this year. Meanwhile, mortgage refinancing continued its rapid decline, undoubtedly due to the recent rate increases.

While purchasing activity decreased by 3.3 percent , the past four weeks’ averaged activity is stronger than in weeks prior. And while homebuying has been modestly rising since the end of July, the current activity has yet to reach the levels seen at the beginning of this year. Meanwhile, mortgage refinancing continued its rapid decline, undoubtedly due to the recent rate increases.

On an unadjusted basis, the Purchasing Index in the latest week was 9 percent lower than what it was one year ago (year-over-year percent change for the same week) and its refinancing counterpart was 42 percent lower.

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https://eyeonhousing.org/2021/12/mortgage-purchasing-activity-strengthens/

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