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
Consumer spending, income slip in July #Market #NewsNow http://t.co/GHFviIePLS
1 hours ago
Breaking on #NewsNow: Loan balances up 9.8% in 2nd Q, per @TheNCUA http://t.co/sqoJTfHQ8q
1 hours ago
#NewsNow S.F. paper notes Bay Area CUs' growth, 100M milestone http://t.co/rxl2TrwRIt
1 hours ago
Take 1 step to prepare See #NewsNow http://t.co/iAmMGHY9V3 HT @AgilityRecovery graphic #NPM @Readygov http://t.co/KDvJl9K9hJ
2 hours ago
#NewsNow: Seth Carpenter nominated to be @USTreasury assistant sec. for financial markets. http://t.co/SfLjscjrEE
2 hours ago