According to The Mortgage Bankers Association’s Weekly Applications Survey, purchase demand reached its highest level since the expiration of the tax credit last week. The Purchase Index gained 9.3 percent due to a 17.2 percent increase in FHA applications and a 3.6 percent jump in conventional purchase applications. Jay Brinkmann, MBA’s chief economist, said the spike in FHA applications may have been driven by borrowers hoping to get applications in before new FHA requirements took effect October 4th. The average contract interest rate for 30-year fixed-rate mortgages fell to 4.25 percent from 4.38 percent a week earlier. More here and here.