Economic News

After a rough patch, mortgage application volume is rising again

Good news for real estate

The Mortgage Bankers Association (MBA) is reporting that despite the downward trend of weeks previous including a 15 percent drop last week, the week ending October 21st saw a five percent increase from the week prior, making up for some of the recent decline.

Continuing with the recent trend, the refinance share of mortgage activity dropped slightly to 77.3 percent of all applications and the adjustable rate mortgage share rose to 5.9 percent, another slight shift from the week prior. Investors account for six percent of applications, up slightly from weeks past.

The average contract interest rate for the week on 30-year fixed rate mortgages with conforming loan balances was unchanged at 4.3 percent of application volume, while 30-year fixed rate mortgages on jumbo loans rose a bit to 4.68 percent. FHA backed 30-year fixed rate loans dropped very slightly to 4.11 percent.

Mortgage rates remain lower than ever, but they are on a slow incline, having dropped below four percent for the first time, only to immediately go back above four percent. Housing continues to struggle and lending is no different, although a week of increase mortgage application volume is welcome news.

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