WRE News October 20, 2023
Buyer
Mortgage application activity plummeted to a 28-year low, according to data from the Mortgage Bankers Association (MBA) covering the week ending Oct. 13.
The Market Composite Index, the trade group’s measure of mortgage loan application volume, slumped by 6.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was down 7%.
The seasonally adjusted Purchase Index decreased 6% from one week earlier while the unadjusted index was down by 5% and was also 21% lower than the same week one year ago.
The Refinance Index fell 10% from the previous week and was 12% lower than the same week one year ago. The refinance share of mortgage activity decreased to 30.5% of total applications from 31.6% during the previous week.
Among the federal programs, the FHA share of total applications increased to 14.8% from 14.4% in the previous week while the VA share of total applications increased to 10.7% from 10.2% the week prior and the USDA share of total applications remained unchanged at 0.5%.
“Applications decreased to their lowest level since 1995, as the 30-year fixed mortgage rate increased for the sixth consecutive week to 7.70% – the highest level since November 2000,” said Joel Kan, MBA’s vice president and deputy chief economist, who also noted, “The ARM share was 9.3%, the highest share in 11 months, as some borrowers look for alternative ways to lower their monthly payments. Refinance activity was at its lowest level since early 2023. There is very limited refinance incentive with mortgage rates at multi-decade highs.”
Stay up to date on the latest real estate trends.
February 5, 2025
Dietary recommendations for kids are pretty clear about what should be eaten and avoided—choosing fresh fruits and vegetables, for example, over ultra-processed foods … Read more
February 5, 2025
Millennials have seen stupendous growth in net worth, thanks to unprecedented home appreciations and stock market gains, but they still feel poor.
February 5, 2025
New dietary guidelines, which inform federal nutrition programs and influence what Americans are told to eat, are expected to roll out later this year.
February 5, 2025
February 4, 2025
Except for Canada’s famous sites and biggest cities, most American travelers — including travel writers — know very little about other places to see and restaurants to… Read more
February 4, 2025
How many times a day do you touch your phone?
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today