Applications to Purchase Homes Rose Last Week 
Mortgage applications to purchase homes rose 2.4 percent last week, compared to the previous week, on a seasonally adjusted basis, according to the weekly report from the Mortgage Bankers Association.

The increase was driven by a 4.5 percent rise in applications for government-guaranteed mortgages, including FHA and VA loans. Conventional purchase applications increased 0.8 percent.

On an unadjusted basis, purchase applications rose 1.5 percent compared to the previous week and were down 32.4 percent compared to the same week a year ago.

Mortgage rates declined:

· 30-year fixed-rate mortgages decreased to 4.38 percent from 4.44 percent;
· 15-year fixed-rate mortgages decreased to 3.77 percent from 3.88 percent;
· 1-year ARMs increased to 7.04 percent from 6.96 percent.

Source: Mortgage Bankers Association (09/29/2010)