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Mortgage applications slump as demand for refinancing wanes

June 14, 2021

Requests to refinance accounted for 6 out of 10 applications

Demand for mortgages slipped last week as requests to refinance slowed, outweighing the impact of a slight increase in purchase loan applications.

For the week ending June 4, the Mortgage Bankers Association’s Weekly Mortgage Applications Survey showed requests for all types of mortgages falling by a seasonally adjusted 3.1 percent from the week before, and dropping 27 percent from a year ago.

Requests for purchase loans were up a seasonally adjusted 0.3 percent from the week before, but down 24 percent from the same time a year ago. Applications to refinance were down 5 percent week-over-week, and 27 percent lower than the same week one year ago.

“Purchase applications were up slightly last week, and the large annual decline was the result of Memorial Day 2021 being compared to a non-holiday week, as well as the big upswing in applications seen last May once pandemic-induced lockdowns started to lift,” said the MBA’s Joel Kan.

Although mortgage rates did come down a bit last week, most of the decline came late in the week, said the MBA’s Joel Kan. “With fewer homeowners able to take advantage of lower rates, the refinance share dipped to the lowest level since April,” Kan said.


Although mortgage rates have retreated from a surge seen in February and March, home sales have been dented by listing shortages and record home price appreciation.

According to a recent Fannie Mae survey, more than half (56 percent) of consumers think it’s a bad time to buy a home. Despite that, a record-high 72 percent of consumers said they’d prefer buy a home rather than rent if they were going to move.


Source Inman

Written by Matt Carter

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