Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Mortgage applications rise despite government shutdown

Mortgage applications are up this week, but continued economic uncertainty is making many nervous about the housing recovery.

mortgage applications

mortgage applications

Mortgage applications increase

According to the Mortgage Bankers Association (MBA), mortgage applications rose 1.3 percent last week, including both home purchase applications and refinance applications, seasonally adjusted. This follows a dip of 0.4 percent the week prior, and weeks of mostly decline in previous weeks as mortgage interest rates increase, slowing the pace of applications.

Last week’s activity boost was led primarily by refinance activity which rose 2.5 percent, a welcome sign after recently plummeting to the lowest level in over four years, now hitting its highest point since August, a marked improvement.

Rates and an ongoing shutdown showdown

The MBA’s report this morning is released as the federal government shutdown has dominated headlines, which has not negatively impacted application volume. Yet. Many economists are vocal with their fears that continued headbutting in Congress and the White House could hamper the economic recovery, particularly housing.

According to the MBA, 30-year mortgage rates fell 7 basis points to 4.42 percent, after hitting the year’s highest point of 4.8 in September.

Advertisement. Scroll to continue reading.

Why economists are becoming uneasy

This week, LPS reported that mortgage delinquency rates have improved dramatically, with 6.20 percent of mortgages were delinquent in August, falling from 6.41 percent in July, a substantial improvement in a short period. Additionally, 2.66 percent of mortgages were in the foreclosure process, falling from 4.04 percent in August 2012.

Meanwhile, Trulia indices indicate a slowdown in the housing recovery, as asking prices rose 2.0 percent in September compared to August, but reporting a quarter-over-quarter price gain of only 3.0 percent was the lowest quarterly increase since February. Prices actually fell quarter-over-quarter in 11 of the 100 largest metros, notes Trulia.

The housing recovery is shaky, and economic uncertainty fueled by nagging political battles is making several economist restless in light of signs that housing was already recovering, but is now seeing a slowdown in pace and diminishing consumer optimism, despite an uptick in refinance activity.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Economic News

(BUSINESS NEWS) Ben Carson's initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

Housing News

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as...

Housing News

(Housing News) If you own a home or are thinking of buying, you should know the factors that give you an advantage with your...

Housing News

(Housing) Realtors are tasked with being up to date on endless information, and attending the annual REALTORS Conference and Expo is a fast way...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.