Mortgage Purchase Applications Fall, Refinancing Rises Sharply

A drop in rates during the January 15 week fed a sharp jump in refinancing applications, which rose 19 percent, but not for purchase applications which fell 2 percent. But purchase applications did surge in the prior week and remain 17 percent higher than a year ago which is a positive indication for underlying home sales. The average rate for 30-year conforming mortgages ($417,000 or less) fell 6 basis points in the week to 4.06 percent.