Mortgage applications up behind home loan refinancings

Purchase applications were boosted last week with buyers making a move before stricter HA standards went into effect Oct. 4. 

The theory was “confirmed by the fact that this week FHA applications fell back to a level closer to the average seen over the past four months,” Fratantoni said.

The four-week moving average for applications, which smoothes the volatile weekly figures, was up 3 percent. The purchase index average is down 0.3 percent while the refinancing index is up 3.9 percent. 

The refinance share of mortgage activity increased to 83.1 percent of total applications from 78.9 percent the previous week and is the highest refinance share since January 2009. 

The average rate on a 30-year fixed mortgage fell to 4.21, from 4.25, the lowest in records going back to 1990, today’s report showed. 

The average rate on a 15-year fixed loan fell to 3.62 percent, from 3.73 percent, also the lowest on record.