Mortgage Purchase And Refinancing Applications Rise

Purchase applications for home mortgages rose a seasonally adjusted 0.3 percent in the September 14 week, maintaining the purchase index a respectable 4 percent higher than the level a year ago. Applications for refinancing bounced back to rise 4 percent after falling to the lowest level since December 2000 in the prior week, with the refinance share of mortgage activity increasing by 1.2 percentage points to 39.0 percent. The week's applications gains came despite a rise in mortgage rates to the highest level since April 2011, with the average interest rate on 30-year fixed rate conforming mortgages ($453,100 or less) up 4 basis points from the prior week to 4.88 percent. Purchase applications have come back into positive year-on-year territory in recent weeks, a positive sign for a housing market that has been mostly disappointingly soft in the summer months, with buyers frustrated by low supplies and falling affordability. This morning's release of August housing starts and permits data should offer further insights into the state of the housing market.