Applications to Purchase Homes Rise

Mortgage applications for purchases of homes rose 2.7 percent last week on an adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey. However, refinancing activity decreased as rates rose.

On an unadjusted basis, mortgage applications increased 2.8 percent. They declined 15 percent compared to the same week a year ago.

The refinance share of mortgage applications decreased 7.1 percent last week. Overall, the bankers’ applications index declined 3.9 percent compared to the previous week.

Here are the average rates:

* 30-year fixed-rate mortgages increased to 5.01 percent from 4.91 percent.
* 15-year fixed-rate mortgages increased to 4.33 percent from 4.24 percent.
* 1-year ARMs remained unchanged at 6.75 percent.

Source: Mortgage Bankers Association (03/24/2010)