Mortgage Daily Logo
mortgage news from industry experts

Apps Head Down, But Rates Don’t

Although one industry expert remains confident rates won’t rise dramatically, the upward trend has visibly slashed applications.

The Mortgage Bankers Association of America (MBA) reported a 20.5% slump in overall applications for the week ending October 10, lowering the Market Composite Index to 649.6. A year ago this index stood at 1288.4.

While the prior week’s refinance applications had increased nearly 20%, the recent Refinance Index reversed the gain completely decreasing 22.1% from the prior week to 2340.1, according to the MBAs Weekly Mortgage Applications Survey. Last year at this time, the index was reported at 6793.8, marking the twelfth consecutive week it’d been above 4000. The refinance share of mortgage activity slightly decreased to 53.9 percent.

As for rates, Freddie Mac reported in its Primary Mortgage Market Survey that the 30-year fixed-rate mortgage averaged 6.05%, a 10 basis points (BPS) higher than the prior week. The prior year, the 30-year averaged 6.15%.

The average 15-year loan also increased 10 BPS from last week to 5.36%, according to Freddie’s survey.

Freddie reported the 1-year Treasury-indexed adjustable-rate mortgages (ARMs) increased 10 BPS to 3.79%, while MBA said the application ARM share of activity edged up to 25.2 percent.

“Bond yields have been creeping up on an almost daily basis since the beginning of October, pushing mortgage rates up as they go,” said Frank Nothaft, Freddie’s chief economist, in an announcement. “Inflation remains low, however, and we expect that to continue into 2004 and beyond. And as long as it does, we won’t see mortgage rates rising very dramatically.”

The 10-year Treasury note closed Thursday 17 BPS higher than reported last week at 4.46%. The price lowered from 99 21/32 last week to 98 10/32.

At Bankrate.com, 50% of the mortgage industry panelists believe mortgage rates will rise over the next 30 to 45 days. But, 30% say there’s little change in store for rates and 20% predict a downturn, according to the website.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION