Mortgage Applications: Housing Interest Up or Down?

The most recent Weekly Survey on Mortgage Application Activity released by the Mortgage Bankers Association brings back some positive light after showing declines for the third week of October. Looking at over 50% of all US residential mortgage applications, the MBA reports that demand for new mortgages increased 8.2% in the last week of October while average 30-yr fixed rates fell to 4.97%. The week before application activity had fallen 12.3% even though rates dropped that week as well.

Not only did mortgage application activity indicate that home buying interest may be increasing, but refinance applications increased as well. Consumers seem to be confident in rate levels. Seeking out lower monthly payments which could mean increased consumer spending or savings towards lowering DTI ratios.

However, looking at October as a whole, mortgage application activity is down 5.5% and refinance activity is down 5.7% when seasonally adjusted. [MBA data pulled from Reuters 11.4.09]
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