How Have Mortgage Application Volumes Shifted?

The results from the most recent Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey have just been released. The survey, which analyzed data for the week ending on October 30, 2020, revealed that the Market Composite Index, which is used to measure mortgage loan application volume, experienced an uptick of 3.8% from just one week prior (seasonally adjusted). As for the unadjusted increase, that was revealed to be only a 3% rise compared with the week prior.

The survey results also highlighted that the Refinance Index rose 6% from the previous week, making the uptick 88% percent higher than it was during this same week last year. Also revealed was info regarding the seasonally adjusted Purchase Index, which dropped 1% percent from the week prior. As for the unadjusted Purchase Index, that fell 3% from the week prior, bringing it to being 25% greater than this same week one year ago.

Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting, commented on the survey results: "Mortgage rates continue to hover at record lows this fall. The 30-year fixed mortgage rate remained essentially unchanged at 3.01 percent last week, but rates for 15-year fixed-rate loans, FHA loans and jumbo loans all fell to new MBA survey lows.”

Kan added insight about the results of this week’s changes: “The drop in rates spurred an uptick in demand for refinances. Activity increased over 6 percent, with borrowers notably seeking conventional and government loans. After a solid stretch of purchase applications growth, activity decreased for the fifth time in six weeks, but was still over 25 percent higher than a year ago, and has increased year-over-year for six straight months. 2020 continues to overall be a strong year for the housing market."

Further highlights of the report revealed an increase in the refinance share of mortgage activity (to 68.7% of total applications from 66.7% the previous week), an unchanged adjustable-rate mortgage (ARM) share of activity, and a decrease in the FHA share of total applications. Also included in the report were mentions that the VA share of total applications increased, while the USDA share of total applications remained unchanged, among other insights.