Mortgage Refinancing Sharply Higher, Applications Rise Only Slightly

The refinancing index, often subject to weekly volatility, swung 14.0 percent higher in the September 27 week after swinging 15.0 percent lower in the prior week. The purchase index, where volatility is less dramatic, rose 1.0 percent in the week after the prior week's 3.0 percent dip. Year-on-year, purchase applications are up a strong 10.0 percent which is a positive indication for underlying home sales. Mortgage rates are very favorable, down 3 basis points in the week to 3.99 percent for 30-year conventional loans.