Mortgage Purchase Applications Rise Again, Refinancing Falls

Purchase applications for home mortgages have been strong this year but have yet to give much lift to underlying home sales which have been no better than flat. The purchase index rose 4.0 percent in the March 4 week for a very sizable year-on-year gain of 30 percent. Demand for refinancing has also been strong though the index slipped 2.0 percent in the latest week. Not helping was a 6 basis point rise in 30-year conforming loans ($417,000 or less) to an average 3.89 percent.