Mortgage rates continued to remain at record low levels in the latest survey while mortgage application activity increased. The MBA reports that the 30-year fixed-rate mortgage fell by four basis points to 3.01% with 0.37 in points for the week ended October 2, 2020. The Market Composite Index, a measure of mortgage loan application volume, rose 4.6%. The Refinance Index gained 8% while the Purchase Index declined 2%. The MBA's Joel Kan said, "Continuing the trend seen in recent months, the purchase market is growing at a strong clip, with activity last week up 21 percent from a year ago."
Fannie Mae released its Home Purchase Sentiment Index (HPSI) for September revealing that the rapid housing recovery continues as mortgage rates remain near historic lows. The HPSI rose 3.5 points in September to 81.0. Consumers reported a significantly more positive view of home-selling conditions, anticipated home price growth, and the labor market, but a more pessimistic view of homebuying conditions and mortgage rate expectations. Doug Duncan, Senior Vice President and Chief Economist said, “Consumers’ home price expectations were up strongly this month, with high home prices playing an increasingly – though unsurprisingly – important role in driving both the increase in ‘good time to sell’ sentiment and the decline in ‘good time to buy’ sentiment."