Mortgage Purchase Applications Rise, Showing Upward Trend

Week-to-week purchase applications have been swinging wildly so far this year but the trend is definitely higher. Purchase applications rose 0.2 percent in the February 5 week but the year-on-year rate is sharply higher, at plus 25 percent. The refinance index has also been moving higher, up 9.0 percent in the latest week. Low mortgage rates have been stimulating the activity with the average 30-year conforming mortgage ($417,000 or less) down 6 basis points in the week to 3.91 percent for the lowest reading since April last year.