Mortgage Purchase Applications Rate Unchanged

Despite another fall in interest rates, prospective home buyers remained complacent and applications for home mortgages were unchanged on a seasonally adjusted basis in the July 8 week, but homeowners were busy refinancing to lock in the lower rates, with the refinancing index up a seasonally adjusted 11 percent following the prior week's outsized 21 percent rise. On an unadjusted basis, the purchase index fell 20 percent compared to the previous week and was down 5 percent from a year ago, with the comparison distorted by the damping effect of the Independence Day holiday, which fell on the prior week last year. The average rate for 30-year fixed-rate mortgages on conforming loans ($417,000 or less) fell 6 basis points to its lowest level in more than three years, 3.60 percent.