WASHINGTON (10/22/15)--After plummeting 27.6% during the week following implementation of the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures (TRID) rule, mortgage application volume rebounded for the week ending Oct. 16 with an 11.8% correction (Economy.com Oct. 21).
The refinance application index climbed 8.8% and the purchase index rose 16.4%, after falling by 22.5% and 34.1% respectively the prior week, according to the Mortgage Bankers Association’s (MBA) weekly loan application survey.
“On an adjusted basis, application volume increased last week, led by a sharp rebound in government volume,” said Mike Fratantoni, MBA chief economist (Housingwire.com Oct. 21). “We expect that application volume will remain volatile over the next few weeks as the industry continues to implement TRID.”
The four-week moving average for refinance applications climbed 2.9% for the week, and came in 20% higher on a year-over-year basis. For purchase applications, the four-week moving average edged higher by 0.5% and jumped 22.1% on a yearly basis.
Mortgage rates, meanwhile, continue to flatline.
The contract rate for 30-year fixed-rate mortgages dropped 4 basis points to 3.95%, which is down 14 basis points from a month ago and 15 basis points from a year ago.
Furthermore, the contract rate for 30-year fixed-rate jumbo mortgages slipped 2 basis points to 3.87%, and the five-year adjustable-rate mortgage rate dipped 6 basis points to 2.94%.
“Weak data in employment, inflation, and consumer spending have weakened the case for the Federal Reserve to begin raising rates,” said Michael Ferlez, Moody’s analyst (Economy.com). “While we still expect the Fed to begin raising rates this December, the pace will be more gradual than previously forecast. This will keep mortgage rates near record lows through the near term, benefiting potential homebuyers.”