With inventory improving in many markers, the Mortgage Bankers Association reports that demand is on the rise.
In the MBA’s weekly report, mortgage applications increased 4.9 percent from one week earlier, for the week ending September 17, 2021. The Market Composite Index, a measure of mortgage loan application volume, increased 4.9 percent on a seasonally adjusted basis from one week earlier.
“There was a resurgence in mortgage applications the week after Labor Day, with activity overall at its highest level in over a month, and purchase applications jumping to a high last seen in April 2021,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Housing demand is strong heading into the fall, despite fast-rising home prices and low inventory. The inventory situation is improving, with more new homes under construction and more homeowners listing their home for sale.”
Even with this week’s notable increase in interest the MBA notes that purchase applications were still 13 percent lower than the same week a year ago.
The Refinance Index increased 7 percent from the previous week and was 5 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 2 percent from one week earlier.
The refinance share of mortgage activity increased to 66.2 percent of total applications—up from from 64.9 percent the previous week. The adjustable-rate mortgage share of activity decreased to 2.9 percent of total applications.