Mortgage Purchase Applications Rise, Refinancing Falls

Mortgage rates are making deeper lows but the burst of refinancing, which peaked in early August, has apparently already passed. The refinance index fell sharply for a second straight week, down 7.0 percent in the August 30 week despite a 7 basis point decline in conventional 30-year mortgages to an average 3.87 percent. And lower mortgage rates have yet to spark much activity for purchase applications which did rise 4.0 percent in the latest week to only reverse, however, the prior week's 4.0 percent decline. Yet year-on-year, the purchase index is up 5.0 percent which is a positive indication for underlying home sales.