Mortgage Purchase Applications Slow

Mortgage activity slowed in in the October 7 week, with seasonally adjusted purchase applications for home mortgages falling 3.0 percent while refinancing fell by 8.0 percent to the lowest level since June. Versus the comparable week a year ago, however, unadjusted purchase applications were 27 percent higher, a sharp reversal of the 14 percent year-on-year decline seen in the prior week. At 62.8 percent, the refinancing share of mortgage activity was 1.4 percentage points smaller than in the previous week. A bounce up in mortgage rates from historical lows most likely gave both buyers and refinancers reason to pause. The average interest rate on 30-year fixed-rate conforming mortgages ($417,000 or less) rose 6 basis points to 3.68 percent.