Originations

The increased limit on the size of the mortgages the government-sponsored enterprises will be able to buy reflects the year-over-year change in home prices.

The increases set to go into effect in February help some offset breaks for first-time buyers but also limit options for existing borrowers.

However, a tiered pricing system will limit an inflation-driven increase to under 10% for a small group of originators.

Prospective borrowers are still looking at inland hotspots but coastal cities will make a comeback in the next 12 to 24 months with favorable acquisition costs and inventory, according to Guaranteed Rate's top-ranked loan officer.

Living next to an ALDI's, Trader Joes or Whole Foods increases home price appreciation, according to an Attom report.

But the rapid drop could be enhancing the volatility that is keeping buyers out of the market, Freddie Mac said.

Another fall in interest rates spurred a gain in activity, but volumes are still almost 70% off levels from 12 months ago, the Mortgage Bankers Association said.

Nonbanks will probably see the least change, while securitization lenders, depositories and REITs are likely to experience the most, an Urban Land Institute survey suggests.

The national median payment grew to $2,012 last month from $1,941 in September, the Mortgage Bankers Association found.