Purchase applications rising as more buyers seek mortgages

More moving families sought a mortgage to finance their home purchase during the week ending October 29, according to an industry report.

The Mortgage Bankers Association reported that purchase application volume increased 1.4 percent from the previous week, even as the trade group reported rising rates on some mortgages. The average interest rate on a 30-year fixed-rate mortgage was up to 4.28 percent from 4.25 percent the week before. On the other hand, families moving into a new home with a shorter 15-year fixed-rate mortgage would find rates averaging 3.64 percent, lower than 3.67 percent from the week before.

Still, despite the weekly improvement in purchase activity, those mortgage applications were down 28 percent from the same week one year ago, showing that year-over-year moving activity remains depressed to some extent. Additionally, fewer families sought to refinance their mortgages, with refinance applications decreasing 6.4 percent from the previous week and making up 81.3 percent of total mortgage activity, down from 82.3 percent the week before.

Mortgage application volume has fluctuated for weeks as some families have elected to get their moving plans in gear. Last week the MBA reported that total mortgage volume actually increased 1.4 percent from the previous week.
 

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