Recent Updates

  • Israel: GDP (Q3)
  • US: Mfg & Trade Inventories & Sales (Sep), IP & Capacity Utilization, Advance Retail Sales, Import/Export Prices (Oct)
  • China Regional: China: Beijing Housing Price Index (Oct)
  • Bulgaria: Registered Unemployment (Oct)
  • more updates...

Economy in Brief

Mortgage Applications Jumped
by Tom Moeller November 3, 2004

Mortgage applications jumped 8.2% last week following a slight decline the week earlier, according to the Mortgage Bankers Association (MBA). For the full month of October, applications rose 2.2% from the September average.

Purchase applications surged 12.6% but the monthly average nevertheless fell 1.2% from September. During the last ten years there has been a 60% correlation between the y/y change in purchase applications and the change in new plus existing home sales.

Applications to refinance rose a moderate 3.1% w/w but jumped 6.7% for the month.

The effective interest rate on a conventional 30-year mortgage rose to 5.90% from 5.81% the prior week and averaged 5.92% in October. The effective rate on a 15-year mortgage rose to 5.31%.

The Mortgage Bankers Association surveys between 20 to 35 of the top lenders in the U.S. housing industry to derive its refinance, purchase and market indexes. The weekly survey accounts for more than 40% of all applications processed each week by mortgage lenders. Visit the Mortgage Bankers Association site here.

MBA Mortgage Applications (3/16/90=100) 10/29/04 10/22/04 Y/Y 2003 2002 2001
Total Market Index 761.7 703.9 11.2% 1,067.9 799.7 625.6
  Purchase 496.5 440.9 22.8% 395.1 354.7 304.9
  Refinancing 2,303.9 2,233.8 -0.7% 4,981.8 3,388.0 2,491.0
close
large image