Each day the Research staff at the National Association of Realtors takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights mortgage applications.
- Mortgage applications declined 14.9 percent during the week ending October 14, maintaining the up-and-down trend of activity, with the Purchase index decreasing 8.8 percent.
- The Refinance index dropped 16.6 percent from the prior week, as interest rates on 30-year fixed mortgages rose from 4.25 to 4.33 percent.
- Cash purchases—which account for 30 percent of transactions—were not captured in the data.
- The Census released the latest Consumer Price Index (CPI) for the month of September—prices for goods rose 0.3 percent from the previous month.
- Consumer prices are up 3.9 percent compared with last year, indicating an upward inflationary drift. The Cost of Living Adjustment on social security checks for 2012 is likely to be 3.5 to 4.0 percent.
- The core CPI—excluding food and energy—was up 0.1 percent in September.
- In another report, the Census Bureau shows that new housing starts registered an annual rate of 658,000 units in September, a 15 percent increase from the revised August figure.
- New housing completions were up 2.1 percent in September compared with August—at 428,000 units—and 2.1 percent year-over-year.