Mortgage Purchase Applications Strong, Refinancing Continues To Lag

Purchase applications for home mortgages rose by 2 percent in the March 25 week, with the year-on-year increase continuing very strong at 21 percent. Refinance applications declined by 3 percent from the previous week, continuing recent softness in this component as mortgage rates, while still very low, have edged higher of late. The average rate for 30-year conforming loans ($417,000 or less) increased by 1 basis point from the prior week to 3.94 percent. Though not weak, the report does little to raise hopes of an awakening of the recently quite dormant housing market. A glimmer of such hope may have appeared after Monday's report of a surprisingly strong 3.5 percent month-to-month rise in pending home sales in February.