In its last report of 2020, the Mortgage
Bankers Association (MBA) said refinancing represented nearly three-quarters of
application activity during the week ended December 18 while purchase
applications declined. MBA’s Market Composite Index, a measure of mortgage loan
application volume, increased 0.8 percent on a seasonally adjusted basis from
one week earlier and was up 1 percent on an unadjusted basis. The Refinance Index increased 4 percent
from the previous week and was 124 percent higher than the same week one year
ago. The refinance share of mortgage activity increased to 74.8 percent of
total applications from 72.7 percent the previous week. The seasonally adjusted Purchase Index dropped
by 5 percent from the previous week and was 7 percent lower unadjusted.
Purchase activity was 26 percent higher than during the same week one year ago.