Mortgage Refinancing Applications Surge, Applications Lag Again

The rush in the global financial markets to the safety of US Treasuries is tripping a landslide in refinancing applications, surging 21.7 percent in the August 9 week on top of the prior week's 5.3 percent jump. The average conventional 30-year mortgage fell 7 basis points in the prior week and 8 points in the latest week to 3.93 percent. Demand for home purchases, however, is showing much less movement, up only 2.0 percent in the latest week though the year-on-year rate, at plus 12.0 percent, is favorable and does point to improvement for underlying home sales.