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2010-10-06 11:39:36
9.3% Increase In Purchase Home Loans

Applications for mortgages to buy homes rose last week to the highest level since May, while overall applications were down slightly.

The Mortgage Bankers Association says overall applications fell 0.2 percent from a week earlier, driven by a 2.5 percent decline in applications to refinance home loans. Those taken out to purchase homes, however, rose 9.3 percent to the highest level since early May.

Rates have been at or near the lowest level in decades since spring as investors have shifted money into safer Treasury bonds. That has lowered their yields, which mortgage rates tend to track. However the weak economy has kept demand for homes dormant.

The average rate for a 30-year fixed loan dipped to 4.25 percent from 4.38 percent a week earlier.

 
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