Mortgage Purchase And Refinancing Applications Fall

Purchase applications for home mortgages fell a seasonally adjusted 2 percent in the April 6 week, pushing the unadjusted Purchase Index down into negative territory for the first time this year, 0.5 percent below the level in the comparable week a year ago. Applications for refinancing also fell 2 percent from the previous week, which put the refinance share of total mortgage activity at 38.4 percent, its lowest level since September 2008. The mortgage activity decline came despite a usually supportive drop in rates, with the average interest rate on 30-year fixed rate conforming mortgages ($453,100 or less) falling by 3 basis points to 4.66 percent. Purchase applications in the red versus last year is a signal of perhaps only temporary weakness for the housing market.