Highlights
The Mortgage Bankers Association's purchase index fell 3.1 percent in the Oct. 18 week to 415.9, very near the 4-week average which slipped to 419.2. MBA's data have been sagging in recent weeks, in what is more bad news for the housing sector. September sales data for existing homes, released at 10:00 a.m. ET, will be Wednesday's highlight.

Loan rates really came back in the week with 30-year fixed mortgages down 19 basis points to 6.40 percent, 15-year down 23 basis points to 5.86 percent, and 1-year adjustables down 7 basis points to 6.10 percent. The lower rates are likely to raise refinancing applications in the weeks ahead. The refinancing index rose 4.0 percent in the latest week to 2,059.3.