US Mortgage Applications Decline With Declining MBA Refinancing
File photo: A “for sale” sign is displayed outside a house in the Queen Anne neighborhood of Seattle, Washington, United States, May 14, 2021. REUTERS / Karen Ducey / File photo
September 1, 2021
(Reuters) – Mortgage applications fell as refinancing declined last week as mortgage rates remained unchanged.
The Mortgage Banking Association (MBA) said on Wednesday that applications to refinance existing loans fell 3.8% during the week, when the seasonally adjusted Composite Market Index tracking mortgage applications ended on August 27. He said it was down 2.4% from the previous week.
The average contractual interest rate for traditional 30-year mortgages was unchanged at 3.03%. According to the MBA, bids rose 0.6%, reaching their highest level since early July.
Mortgage rates rose in the first half of this year, peaking in the spring, after hitting a record low of 2.9% at the end of 2020. Since then, interest rates have come down, most of them suppressed by the extraordinary stimulus of the Federal Reserve. aimed at helping the economy recover from the novel coronavirus pandemic. ..
Joel Kang, vice president of economics and industrial forecasting at the MBA, said, “Recent economic and pandemic uncertainties have kept interest rates low over the past month, so the refinancing index has fluctuated around these levels. “
(Evan Sully report; edited by Leslie Adler)