Mortgage Applications Plunge 4.0% amid Concerns of Costly Housing

Source: Mortgage Bankers Association

US mortgage application volume plunged by 4.0% for the week that ended July 16, 2021 as concerns of higher prices and limited inventory crawled back into the market.

XHB is up +0.75%.

• The Refinance Index fell by 3% from. the previous week, remaining 18% lower than the same week a year ago. 
• The refinance share of mortgages was 64.9% of total applications, up from 64.1 in the previous week.
• The adjusted Purchase Index fell 6% from the previous week, while the adjusted rate rose 17%.
• The fall in mortgage application volume happened amid limited inventory and higher prices that deterred new homebuyers from the market.
• The fall in mortgage applications also follows a sharp fall in the 10-year Treasury yield due to concerns of the spread of Covid variants.
• The rate on the 15-year fixed rate loan, majorly used by about 20% of refinance borrowers, declined to the lowest level since January of 2.46%.