Mortgage Purchase Index Flat, Refinancing Continues Slide

After 2 straight weeks of strength, the purchase index came in flat in the October 6 week at a 0.1 percent dip. Yet the year-on-year rate improved 2 percentage points to a very solid 7.0 percent rate in what is a positive signal for underlying home sales. Refinancing activity continued its extended slide, down a weekly 4.0 percent and, at 49 percent, is below purchasing applications as a share of total activity. Rates remain low but did climb in the week, up 4 basis points for 30-year fixed mortgages to 4.16 percent.