Refinance Applications Fall to 3 Month Low

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Home borrowing costs increased in the latest week and remain just above record lows. The Mortgage Bankers Association (MBA) reports that the 30-year fixed-rate mortgage rose four basis points to 3.14% with 0.34 in points for the week ending October 1, 2021. Within the report it showed that the Market Composite Index fell 7%, the Refinance Index declined by 10% and the Purchase Index saw a 2% loss. A spokesperson said, "Mortgage applications to refinance dropped almost 10 percent last week to the lowest level in three months, as the 30-year fixed rate increased to 3.14 percent - the highest since July. Higher rates are reducing borrowers' incentive to refinance, as declines were seen across all loan types."

Private payroll growth beat expectations in September setting the stage for the Federal Reserve to announce tapering of its massive bond purchase programs at the November 3rd Fed meeting. ADP Private Payrolls rose 568,000 in September versus the 405,000 expected. The leisure and hospitality sector led with 226,000 while companies with 500 and more employees led job creation with 390,000. The data comes before Friday's official Jobs Report.

 

Home borrowing costs rise. Mortgage application volume declines. Private payroll growth surges.

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