With mortgage rates falling, there is a sense that more buyers may come back into the market. According to the Mortgage Bankers Association's index, mortgage applications rose two percent last week compared with the week before. Volume, however, was 19 percent lower than the same period one year ago.
Refinancing was the key to volume with lower interest rates affecting the numbers. But while volume was up this week, it was off by 36 percent from last year. Mortgage applications to purchase a home rose just one percent for the week and were 0.2 percent higher than a year ago. Mortgage interest rates are still 89 basis points higher than a year ago and home prices are still gaining, making home buying ever more expensive.