Slide in rates sparks new refi boom

Demand for purchase mortgages cools after rush for FHA loans

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Five weeks of declining mortgage rates have spurred another refinancing boom, but demand for purchase mortgages sagged last week after a temporary surge of homebuyers rushing to beat stricter FHA standards.

For the week ending Oct. 8, demand for purchase loans was down 8.5 percent from the week before and 37.1 percent from the same time a year ago, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey.