Mortgage Applications Soar

The jump in interest rates following the October employment report, and the risk that they may move yet higher, has tripped a surge in mortgage applications for home purchases, up 12.0 percent in the November 13 week. Year-on-year, purchase applications are up 19 percent. These readings point to a new source of strength for new and existing home sales. Demand for refinancing is also up, rising 2.0 percent in the week. The average 30-year mortgage for conforming loans ($417,000 or less) increased 6 basis points in the week to a still historically low 4.18 percent. This rate has spiked 17 basis points over the past two reports.