Mortgage applications dipped in October
Posted on Wednesday, November 4, 2015 at 2:35:26 PM
Mortgage applications dipped two consecutive weeks in a row at the end of October, according to data released Wednesday by the Mortgage Bankers Association. The MBA reported that the Market Composite Index, a measure of loan applications, decreased 0.8 percent in the week ending Oct. 30, following a 3.5 percent decrease the week before. In that same time period, applications for FHA loans dropped to 13.2 percent from 13.7 percent.
Though mortgage volume was still 10 percent higher than it was in October 2014, residential financing rates have climbed slightly after the Federal Reserve suggested that it might raise interest rates in December. Federal Reserve Chair Janet Yellen advanced the ball on that discussion with her first public comments since last week's Fed meeting, Reuters reported, by signaling that rates, if they were to rise, would do so very slowly to protect economic recovery.
Yellen pointed to reliable economic growth, low unemployment and the belief in a return of inflation as signs that the country is prepared for increased interest rates. Those same factors are what have allowed the housing market to achieve sustained success like it hasn't seen in a decade.