Mortgage rates flat, but mortgage applications increase

The Mortgage Bankers Association's Weekly Mortgage Application Survey for the week ending November 4 showed mortgage application volume increased 10.3 percent compared to the week before.

The survey found the refinance index increased 12.1 percent compared with the previous week, and the purchase index grew 4.8 percent, as well.

"Treasury rates dropped last week, as renewed turmoil in Europe once again led to a flight to quality, and 30-year mortgage rates dropped to their second lowest level of the year," said Mike Frantoni, MBA's vice president of research and economics. "Refinance applications jumped more than 12 percent to their highest level in a month and some lenders experienced even larger increases."

HSH.com's Weekly Mortgage Rate Radar showed mortgage rates remained flat for the past week as the refinance program run by the federal government debuted. The average rate for conforming 30-year fixed-rate mortgages increased a single basis point to 4.14 percent, while the conforming 5/1 hybrid ARM rates fell by 4 basis points to 2.98 percent.

Keith Gumbinger, vice president of HSH.com, said low mortgage rates are a key component to the expanded Home Affordable Refinance Program, which is expected to help up to 1 million homeowners over the next two years.

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