Mortgage Applications Drop 2%

Mortgage applications decreased from one week earlier, according to data from the MBA’s Weekly Mortgage Applications Survey (Mortgage Bankers Association’s)

TOTAL APPLICATIONS, according to the Market Composite Index, decreased 1.9%from one week earlier

  • PURCHASES: The Purchase Index increased 9% compared with the previous week and was 15% higher than the same week one year ago.
  • REFIS: The Refinance Index decreased 5%t from the previous week, but was 87% higher than the same week one year ago

Interest rates are continuing their climb in the new year for both 30 & 15 year rates

  • 30-YR FIXED: The average contract interest rate for a 30-year fixed-rate increased to 3.19% with points increasing to 0.37
  • 15-YR FIXED: The average contract interest rate for a 15-year fixed-rate increased to 2.48% with points increasing to 0.33

Home prices continue to surge. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement, “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.”