Mortgage Purchase Applications And Refinancings Rise

Purchase applications for home mortgages were up 3 percent in the August 5 week compared to the prior week and stood 13 percent higher than a year ago, in a rebound following three consecutive weekly declines that had brought the index to the lowest level since February. Refinancing applications, which accounted for 62.4 percent of all mortgage activity,increased by a seasonally adjusted 10 percent from the previous week. Historically low mortgage rates are again enticing both home buyers and refinancing home owners, with the average interest rate for 30-year fixed-rate mortgages on conforming loans ($417,000 or less) shedding 2 basis points in the week to 3.65 percent.