Home Purchase Applications Lag Despite Low Interest Rates

Low mortgage rates have yet to give much of a lift to purchase applications for home mortgages. The purchase index rose only 1.0 percent in the November 7 week and is down 11 percent from a year ago. The year-on-year rate is little changed from September when rates started to move lower. The refinancing index did move higher earlier but has been in retreat in recent weeks, down a sharp 11.0 percent from the prior week. The average rate for 30-year conforming mortgages ($417,000 or less) rose 2 basis points in the week to 4.19 percent.