Mortgage Purchase Applications Drop, Refinancing Applications Rise

Purchase applications for home mortgages were down just 0.1 percent from the prior week in the September 30 week, but the comparison with the year ago week plunged sharply into deeply negative territory at minus 14 percent. Refinancing applications were up 5.0 percent from the prior week, however, as more mortgage holders seized the opportunity to refinance with lower interest rates. The refinancing share of mortgage activity increased to 63.8 percent, up 1.1 percentage points from a week ago. Mortgage rates fell to the lowest level since July, with the average interest rate on 30-year fixed-rate conforming loans ($417,000 or less) falling 4 basis points to 3.62 percent.