US Mortgage Applications Decrease With Refinancing Decrease-MBA

File Photo: A “for sale” sign is posted outside a home in the Queen Anne district of Seattle, Washington, USA, on May 14, 2021. REUTERS / Karen Ducey / File Photo

September 1, 2021

Evan Sally

(Reuters) – Mortgage applications fell as refinancing declined last week as mortgage rates remained unchanged.

The Mortgage Banking Association (MBA) reflected on Wednesday that refinancing applications for existing loans fell 3.8% during the week when seasonally adjusted market composite index tracking mortgage applications ended on August 27. Said it was down 2.4% from the previous week.

The average contract interest rate for traditional 30-year mortgages remained unchanged at 3.03%. According to the MBA, purchase offers increased by 0.6%, reaching the 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 been declining, most of them suppressed by the Federal Reserve Board’s extraordinary stimulus aimed at helping the economy recover from the new coronavirus pandemic. ..

Joel Kang, MBA’s Vice President of Economics and Industry Forecasting, said: “Recent economic and pandemic uncertainties have kept interest rates low over the past month, so the refinancing index has fluctuated around these levels.”

(Report by Evan Sully; edited by Leslie Adler)

US Mortgage Applications Decrease With Refinancing Decrease-MBA

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