Home Purchase Demand Rises As Rates Fall

According to the Mortgage Bankers Association’s Weekly Applications Survey, the seasonally adjusted Purchase Index increased more than 1.0 percent last week. But despite the improvement in demand for home purchase loans, the Market Composite Index, which measures both purchase and refinance application volume, was down 4.3 percent due to a 6.0 percent slide in the Refinance Index. The refinance share of total mortgage activity also fell, dropping to 79 percent from 80 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 3.80 percent from 3.86 percent the week before. The average rate for jumbo loans also declined, dropping to 4.06 percent. More here and here.

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