Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Market
Refinancing Driving October Mortgage Market Activity
WASHINGTON (10/31/13)--Mortgage applications increased by 6.4% on a seasonally adjusted basis for the week ending Oct. 25, according to data released by the Mortgage Bankers Association.

The group's Market Composite Index, which gauges mortgage application volume, showed that refinancing accounted for the lion's share of the activity, with the MBA Refinance Index up 9% from the previous week.

The Purchase Index was up just 2%, last week, with potential first-time home buyers continuing to be skeptical or priced out of home ownership entirely. While homeowners making their debut normally make up about half of all residential housing purchases, existing-home sales in September showed that first-time home buyers only made up about 28% of such purchases last month, with young adults facing an employers' labor market, and high levels of student debt (Moody's Economy.com Oct. 30) .

Meanwhile, refinancing as a share of total mortgage market application activity, increased to 67%--the highest it has been since June, as interest rates decline. MBA data show that 30-year fixed-mortgage rates, 30-year jumbo mortgage rates, and five-year adjustable rate mortgages have mostly declined between Sept. 6 and last week.

The MBA Market Composite Index accounts for 75% of U.S. retail residential mortgage applications, and has been conducted weekly since 1990.


RSS print
News Now LiveWire
#creditunions emphasize co-op principles during National Co-op Month #NewsNow http://t.co/zEb9UFot1N
54 minutes ago
Servicemember's spouse drives away with Bank on More's SUV thanks to #missouri #creditunions http://t.co/WvTrKxh0sV
2 hours ago
From @FHFA this a.m.: U.S. house prices up 0.5% in Aug. on seasonally adjusted basis from previous month. More here: http://t.co/1yVDOPggeX
3 hours ago
@TheNCUA open meeting is slated to start at 10 a.m. ET. Should be a quick one. #NewsNow http://t.co/rfYjnat7eI
3 hours ago
Mass. CUs in unanimous vote joined RI and NH CUs in approving merger of the 3 state leagues 2 form the Cooperative Credit Union Association.
4 hours ago