Applications for home purchases, a leading indicator of home sales, increased 2.6 percent last week, even with a rise in interest rates, according to the Mortgage Bankers Association’s seasonally adjust index of mortgage activity, reflecting the week ending Oct. 31. The rise follows a 5 percent decrease the previous week.
Refinance activity is diminishing. Refinancing posted a big surge last month due to interest rates hitting the lowest point of the year. But for the last two weeks, refinance activity has fallen, dropping 5.5 percent the prior week.
Due to the big drop in refinancing applications last week, overall mortgage application activity, which reflects both refinancing and home purchases, posted a 2.6 percent decrease in the week.
Meanwhile, the 30-year fixed-rate mortgage was on the rise last week, up four basis points, averaging 4.17 percent.
Source: “U.S. Mortgage Applications Fall in Latest Week: MBA,” Reuters (Nov. 5, 2014)
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