Higher Interest Rates Push Mortgage Applications And Refinancing Lower

Housing data have been improving but today's purchase applications index, down 4.0 percent in the October 18 week, won't be lifting forecasts for home sales. The year-on-year rate for this index, at plus 6.0 percent, is down 6 percentage points for the lowest showing in two months. Mortgage rates moved higher in the week which may help explain the drop in the purchase index and more certainly does explain a very sharp 17.0 percent weekly drop in the refinance index. Conforming 30-year mortgages averaged 4.02 percent in the week, down 10 full basis points from the prior week.