Mortgage Applications Rise, Refinancing Drops

Boosted by lower interest rates, purchase applications for home mortgages have been very strong this year, up 2.0 percent in the February 19 week for a year-on-year gain of 27 percent. Gains here point to underlying strength for home sales where trends have been only modestly favorable. Refinancing applications have also been very strong though they dipped 8 percent in the latest week. Rates moved higher in the week with the average 30-year mortgage for conforming loans ($417,000 or less) up 2 basis points to a still very low 3.85 percent.