As the housing market heads into its traditionally slowest season, homebuyers are making one last gasp, likely due to more supply on the market and softening prices.

Mortgage applications to purchase a home rose 6% last week to their strongest pace since September, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 31% higher than the same week one year ago.

This came despite the fact that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.34% from 6.31%, with points rising to 0.62 from 0.58, including the origination fee, for loans with a 20% down payment. That rate is 52 basis points lower than it was one year ago.

"Purchase applications for conventional, FHA, and VA loa

See Full Page