WASHINGTON, D.C. (July 28, 2021)- Mortgage applications increased 5.7 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 23, 2021.
The Market Composite Index, a measure of mortgage loan application volume, increased 5.7 percent on a seasonally adjusted basis from one week earlier.
"Refinances for conventional loans increased over 11%. With over 95% of refinance applications for fixed rate mortgages, borrowers are looking to secure a lower rate for the life of their loan."
The purchase index decreased for the second week in a row to its lowest level since May 2020, and has now declined on an annual basis for the past three months. Potential buyers continue to be put off by extremely high home prices and increased competition.
The refinance share of mortgage activity increased to 67.2 percent of total applications from 64.9 percent the previous week.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.