Mortgage applications dropped 1.4 percent for the week ending Oct. 5 according to the MBA’s Application Index. Refinances led the way with a 2 percent decline in its index. Purchases reversed trend, and delivered a 3 percent increase in its index for the week. Overall volumes remain at very high levels, with continued optimism in the housing space thanks to the current state of mortgage rates.
The Fed’s October Beige Book report was released Wednesday as well, indicating “modest expansion” throughout its 12 districts. Our two closest districts, Richmond and Atlanta, both indicated moderate growth and overall fundamental stability in most measured categories. A good trend as we enter the fourth quarter of the year, hopefully gaining momentum as we turn the corner into 2013.
The 10-Year Treasury Auction went well Wednesday, putting some upward pressure on prices, thereby helping to drop the 10-year yield below the 1.70 mark. Mortgage rates followed this trend as well, showing slight price improvements by the end of the day on Wednesday.
On Triangle Business Today this week, I’ll be talking with Angie Cole of the Rachel Kendall Real Estate Team about the final weekend of The Triangle Parade of Homes. We’ll also be discussing Triangle housing trends and tips on selling your home this fall.