For the four-week period ending on February 5, 2021, the Mortgage Bankers Association’s (MBA) latest Weekly Application Surveys showed sustained elevated activity, unseen through most of 2020, except at the outset of the COVID-19 pandemic. Additionally, the MBA’s tracked 30-year fixed-rate mortgage hovered a few basis points above 2.9%, reaching 2.96% in the latest week.
While Purchasing maintained higher levels of activity compared to the previous four-week period (i.e., the last two weeks of December 2020 thru the first two weeks of January 2021), the data show that Refinancing was the larger driver of the recent, sustained level of high activity in the Market Composite Index.
Year-over-year gains for Purchasing and Refinancing continued to show strength at 17% and 46%, respectively (for the latest week). The MBA cited that the average purchase loan size increased, reaching another survey-high of $402,200, indicating higher performance in the higher-priced segment of the market.
The refinance share of mortgage activity decreased to 70.2%of total applications from 71.4%the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 2.3 % of total applications.