Mortgage Market Surges

Rate declines tied to last week's post-FOMC surge into the Treasury market likely drove prospective home buyers and existing home borrowers into the mortgage market, according to the Mortgage Bankers Association whose data soared in the September 18 week. The purchase index jumped 9.0 percent in the week with the refinance index up 18.0 percent. Rates moved sharply higher early in the week then broke lower at week's end. Week-to-week, however, the average rate for conforming loans ($417,000 or less) was unchanged at 4.09 percent. Today's report is pointing to a pickup for housing sales and is especially notable for how closely borrowers are reacting to FOMC activity. Watch Thursday for the new home sales report for August.