Mortgage Application Activity Hits Stagnant Week

Mortgage Application Activity Hits Stagnant Week

October 3, 2018
There was little in the way of movement on the mortgage application front for the week ending Sept. 28, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index was unchanged on a seasonally adjusted basis from one week earlier, while the unadjusted index saw a scant 0.2 percent decline. The seasonally adjusted Purchase Index increased by 0.1 percent from one week earlier, but the unadjusted index dipped by 0.2 percent—although the latter was three percent higher than the same week one year ago. The refinance share of mortgage activity was unchanged from the 39.4 percent level from the previous week while the unadjusted Refinance Index decreased by 0.1 percent from the previous week.
Among the federal programs, the FHA share of total applications decreased to 10.2 percent from 10.4 percent the week prior and the VA share of total applications decreased to 10 percent from 10.1 percent while the USDA share of total applications remained unchanged at 0.7 percent.
"Rates were little changed last week, following the most recent Federal Open Market Committee meeting where the Fed announced another rate hike based on the health of the economy and job market as expected, "said MBA Associate Vice President of Economic and Industry Forecasting Joel Kan. "Short-term rates have been increasing but long-term rates have held steady, which should not pose too much of a headwind to home purchase activity, especially given the potential demand from demographic factors."