Purchase applications increase

Mortgage applications rose again this past week, which may indicate that more people are seeking financing to relocate to a new home.

Total mortgage volume increased 2.7 percent on a seasonally adjusted basis for the week ending August 27, reported the Mortgage Bankers Association. Much of that improvement was driven by another rise in mortgage refinancing, which increased 2.8 percent from the previous week. But purchasing applications also rose 1.8 percent on a seasonally adjusted basis.

Increased moving activity may be sparked by falling mortgage rates, which certainly did their part to boost refinancing, said the MBA's vice president of research and economics, Michael Fratantoni. The report added that the average rate on a 30-year fixed-rate mortgage fell to 4.43 percent while 15-year loans dropped to 3.88 percent - both new lows.

Mortgage rate drops were also backed up by an additional report by Freddie Mac. According to their weekly survey, the rate on a 30-year fixed rate mortgage averages just 4.32 percent while 15-year loans average 3.83 percent.

Either way, with rates so low, moving to a new home has rarely ever been as affordable, reported Bloomberg, although experts told the news source that the housing market likely wouldn't receive a significant boost until the national employment picture improved.


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