Mortgage Purchase Applications Fall, Refinacings Flat

Right when some of the housing data are looking favorable, including yesterday's jump in the pending home sales index, purchase applications are beginning to come down. The purchase index fell 3.0 percent in the July 26 week following declines of 2.0 and 4.0 percent in the prior two weeks. Year-on-year, the index is still higher at a solid 6.0 percent gain, yet the string of sharp weekly declines points to the risk of less strength ahead. But mortgage rates are still favorable, unchanged at an average 4.08 percent for conventional 30-year loans. The refinance index was little changed in the latest week, up 0.1 percent.