Refinance Share of Mortgage Applications Drops to Lowest Level Since April


The Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey shows that for the week ending June 4, applications decreased 3.1 percent on a seasonally adjusted basis from one week earlier.

On an unadjusted basis, the index decreased 13 percent compared with the previous week.

The Refinance Index decreased 5 percent from the previous week and was 27 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 0.3 percent from one week earlier, while the unadjusted Purchase Index decreased 11 percent compared with the previous week (24 percent lower than the same week one year ago). 

“Most of the decline in mortgage rates came late last week, with the 30-year fixed-rate mortgage declining to 3.15 percent,” says the MBA’s Joel Kan. “This likely impacted refinance applications, which fell 5 percent for both conventional and government loans. With fewer homeowners able to take advantage of lower rates, the refinance share dipped to the lowest level since April.”

“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,” he adds.

The refinance share of mortgage activity decreased to 60.4 percent of total applications from 61.3 percent the previous week, while the adjustable-rate mortgage (ARM) share of activity increased to 3.9 percent of total applications. 

The FHA share of total applications decreased to 9.5 percent from 9.6 percent the week prior. The VA share increased to 11.2 percent from 10.9 percent, while the USDA share remained unchanged at 0.4 percent.

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