Mortgage Purchase And Refinancing Applications Rise

Purchase applications for home mortgages rose a seasonally adjusted 3 percent in the September 21 week, maintaining the year-on-year gain at a respectable 4.0 percent. Applications for refinancing also rose 3 percent from the prior week, with the refinancing share of mortgage activity increasing by 0.4 percentage points to 39.4 percent. Interest rates jumped higher during the week, with the average interest rate on 30-year fixed rate conforming mortgages ($453,100 or less) rising 9 basis points to 4.97 percent, the highest level since April 2011. Though moderate, the purchase application volume gains despite the substantial rise in interest rates should offer some encouragement to a housing market that has faltered in recent months.