Mortgage Applications, MBA, Rental Prices
October 21, 2015
Wednesday – October 21
The Mortgage Bankers Association (MBA) reported on Wednesday that its Market Composite Index, a measure of total mortgage application volume, surged by 11.8% in the latest week. The index plunged in the previous week, but rebounded led by a sharp rise in government volume. The refinance index rose 9%, while the purchase index soared by 16%.
The MBA also reported that the average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($417K or less) decreased to the lowest since May at 3.95%, from 3.99%, with points declining to 0.29 from 0.41. The MBA sees mortgage rates rising in 2016, but they should remain below 5%.
Rental prices for apartments surged in 2014 and there doesn’t seem to be a pull back any time soon. Annual rental growth in September saw a 5.2% increase, the highest since July 2011 and the eighth consecutive month with gains at 5% or above. Apartment research firm Axiometrics said, “the eight months the rate has been above 5% is the longest period of strength we have seen. The last growth cycle was only four years, and this cycle is already five years long–with no sign of stopping.”