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Mortgage Application Volume Fell Sharply at the End of 2020
Wednesday, January 6, 2021
The Mortgage
Bankers Association (MBA) resumed reporting on mortgage applications today
after a two-week holiday hiatus. Information on mortgage volume during the week
ended December 31 is reported relative to the previous report covering the week
ended December 18 but information on mortgage rates and application shares by loan
types are compared to the week ended December 25. MBA's Market
Composite Index, a measure of mortgage loan application volume, decreased 4.2
percent on a seasonally adjusted basis from two weeks earlier. On an unadjusted
basis, the Index decreased 33 percent compared with two weeks ago. The refinancing
appeared to bounce back from a big loss during the first week of the holiday
season. The Refinancing Index, with an adjustment to account for the holiday, finished
last week down 6.0 percent from its level during the week ended December 18 and
was 100 percent higher than the same week in 2019. During the first week of the
holiday period it had dropped 34 percent. Refinancing applications accounted
for a 72.9 percent share of the week's activity.
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