• Tweet

• Tweet

The Mortgage Bankers Association’s weekly report on mortgage activity, released today, showed overall mortgage activity dipped slightly but provided further evidence that the housing industry may have plateaued and is poised for a strong finish to 2006.

According to the association’s Weekly Mortgage Applications Survey for the week ending October 13, the number of consumers applying for a mortgage to purchase or refinance a home decreased 2.2 percent from one week earlier. However, long-term interest rates, which have recently dropped back to near historic lows, are drawing more people into the housing market, as evidenced by a 0.4 percent increase in purchase activity from the previous week.

“Consumers have remained opportunistic in this refi boom. Long-term rates crept up slightly last week but remain close to historic lows. They continue to provide the stimulus that will make this another strong year for housing,” says Bob Walters, chief economist of Quicken Loans. “Homeowners in adjustable rate mortgages are using this time to be smart with their finances, and we’ve seen many move to a fixed-rate mortgage before their ARM adjusts.”

Indeed, consumer interest in refinancing their mortgage remains robust, accounting for 45 percent of all mortgage activity, despite activity easing 5.3 percent from a week earlier.

 Printer Friendly Version