Mortgage application volume was relatively flat as the nation eased into the
holiday season. The Mortgage Bankers Association (MBA) said its Market
Composite Index, a measure of that volume, rose 1.1 percent on a seasonally
adjusted basis during the week ended December 11. On an unadjusted basis the
increase was 0.4 percent. The Refinance Index increased 1.0 percent from the previous week and was 105
percent higher than the same week one year ago. The refinance share of mortgage
activity increased to 72.7 percent of total applications from 72.0 percent the
previous week. The Purchase Index rose 2.0 percent on both an adjusted and an unadjusted
basis. Volume was 26 percent higher than during the same week in 2019. “U.S. Treasury rates stayed low last week, in part due to uncertainty
over the prospects of additional pandemic-related government stimulus, as well
as concerns about the continued rise in COVID-19 cases across the country.
Mortgage rates as a result fell to another survey low, with the 30-year fixed
mortgage rate dropping five basis points to 2.85 percent,” said Joel Kan,
MBA’s Associate Vice President of Economic and Industry Forecasting.
“Homeowners once again acted on the decline in rates, with refinance
activity rising for the second straight week and up 105 percent from a year