Latest data from the Mortgage Bankers Association for the week ending 2 November 2018
- Purchase index 213.6 vs 224.9 prior
- Market index 316.2 vs 329.5 prior
- Refinancing index 861.8 vs 884.2 prior
- 30-year mortgage rate 5.15% vs 5.11% prior
Headline measures the change in number of applications for mortgages backed by the MBA during the week. Mortgage activity is reported to have fallen to its lowest level in almost four years and that's not all too surprising as the mortgage rate rises to its highest level since 2010. The rise in rates for me is a key takeaway here as it means that it's making it tougher for home buyers to get into the market.
That's not a good sign for the housing market as the Fed continues to hike rates further as we move into the new year. Watch out for this space in the months ahead as it will present a challenging area for the Fed to tackle.
