Purchase activity gains steam while refinancing slows

Interest rates have continued to linger relatively close to their all-time lows, which has continued to motivate home sales throughout the country over the last few weeks, according to the latest weekly survey by the Mortgage Bankers Association.

According to the report mortgage purchase applications increased by 1.1 percent during the week ending November 26 compared to the previous week, after adjusting for the differences caused by the Thanksgiving holiday.

The four-week moving average for home purchases has also increased, and was up 3.8 percent. However, overall mortgage activity dropped 16.5 percent, due to a 21.6 percent drop-off in refinancing over the week.

The MBA added that mortgage rates crept up again for the fourth time in the last five weeks. The average interest rate for a 30-year fixed rate mortgage during the period was 4.56 percent, compared to 4.5 the week before.

The pickup in activity could boost the Houston real estate market. According to the Houston Association of Realtors, year-to-date home sales in the city through October were 4 percent below their levels from 2009.