The MReport Webcast: Tuesday 12/2/2014

Following a slower than expected summer, the U.S. housing market made up some ground in September as most major indicators inched closer to stability. Freddie Mac released last week its latest Multi-Indicator Market Index, revealing a half a percent uptick in September to a reading of 74.4 after months of slight declines. The most recent improvement puts the index a few points short of the lower threshold for a market considered to be in stable territory.

According to Freddie Mac, three of the four major indicators tracked in the index saw improvements in September, led by a slight gain in the gauge of labor health. The components measuring payment-to-income ratios and the proportion of mortgage payments made on time also edged up, though they remain on the weak side. Meanwhile, the already weak picture of home purchase applications deteriorated further, falling nearly 1 percent.                                               

Low mortgage interest rates helped elevate refinance volumes throughout the third quarter as demand for the government's relief refinance program continued to diminish. Together, Fannie Mae and Freddie Mac reported nearly 390,000 refinances throughout the third quarter, according to the Federal Housing Finance Agency. However, as refinance volumes rose, the share of refinances completed through the government's Home Affordable Refinance Program fell further. The FHFA's report shows HARP refinances totaled about 44,000 throughout Q3, representing only about 11 percent of total refinances compared to 16 percent the previous quarter. Interest in the program has steadily fallen in the last year, with the total number of 2014 HARP refinances looking to hit only about one-third of last year's total.