Consumer Confidence Rises for 1st Time in 4 Months

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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 hit the highest level in eight months but remain historically low. The Mortgage Bankers Association reports that the 30-year fixed-rate mortgage rose seven basis points to 3.30% with 0.34 in points for the week ending October 22, 2021. Within the report it showed that the Market Composite Index was essentially unchanged, the Refinance Index declined 1.6% and the Purchase Index saw a 3.5% gain. A spokesperson said, "The increase in rates triggered the fifth straight decrease in refinance activity to the slowest weekly pace since January 2020. Higher rates continue to reduce borrowers' incentive to refinance."

Consumer Confidence rose in October after declines seen in the three previous months as consumers planned on purchasing homes, automobiles, and major appliances. This is signaling that consumer spending will continue to support economic growth through the end of the year. The Consumer Confidence Index rose to 113.8 this month from 109.8 in September. Nearly half of those surveyed are planning on taking a vacation in the next six months, the highest rate since February 2020. "Consumer confidence improved in October, reversing a three-month downward trend as concerns about the spread of the Delta variant eased," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.

 

Home borrowing costs rise. Mortgage refinance applications fall. Consumer Confidence increases.

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