Purchase Activity Lowest in Nearly a Decade
The number of new loan prospects for home purchases fell to the lowest level in nearly a decade despite declining mortgage rates.

Rates Likely to Hold
An increase in refinance activity was supported by a decline in mortgage rates -- which are likely to hang at their current levels through next week.

MTA Headed Below 0.5%
As expected, the monthly Treasury index declined last month and will soon be below a half percent.

COFI Sinks to Record Low
The cost of funds index tumbled nearly 15 basis points in September to its lowest level on record.

Mortgage Market Declines
Most mortgage rates were up 0.03% compared to seven days earlier, while 1003 loan applications declined. Indices on adjustable-rate mortgages, however, managed a small improvement.

1-Year ARM Attractiveness Increasing
As fixed mortgage rates jumped and loan applications fell, the one-year adjustable-rate mortgage improved by 8 basis points. The sudden widening in the spread between fixed rates and the one-year ARM is likely to lead a bigger share of new borrowers to consider the ARM option.

Rates Likely to Jump
Mortgage rates increased this past week, and market signals point to even higher rates next week.

Record Low Rates, Record High FHA Purchases
Rates on two mortgage products fell to the lowest on record, while applications climbed to a record high for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

MTA In Free Fall
It's the same old story. The monthly Treasury average fell to its lowest level on record and will probably decline even more.