Mortgage Purchase Applications Rise, Refinancing Falls

With the rise in mortgage rates taking a pause, purchase applications for home mortgages rose by a seasonally adjusted 6.0 percent in the February 23 week. But unadjusted, purchase applications were down 1.0 percent from the prior week, putting the year-on-year gain in the Purchase Index at a rather slim 3.0 percent, while applications for refinancing, which tend to be more sensitive to the level of interest rates, fell 1.0 percent, taking the refinance share of mortgage activity down 2.6 percentage points to 41.8 percent. The average interest rate on 30-year fixed rate conforming mortgages ($453,100 or less) remained unchanged from the prior week at 4.64 percent, the highest level in 4 years. The week's results include an adjustment for the Presidents' Day holiday.