For example, Anna and Morte stopping and talking to each other (as seen in the Baldur's Gate games). Or even stopping and talking to the Nameless one?

I last played this a good five years ago and I vaguely remember it happening.

I'm currently up to the lower wards and have yet to hear party conversations (if it exists).

Thanks.

There is some, but it mostly comes later in the game once you have more people in your party. Going from what I remember, I didn't get any party dialogue until I was at least 10 hours in, but following that I got a fair bit.

For instance, I remember Morte on multiple occasions attempting to chat up the female members of my party XD

There certainly is. Morte and Nordom in particular have some rather amusing conversations with other party members. You can also initiate conversation yourself with any party member at any time, and depending on the point of the game, various events that have occurred, and pieces of information you may have learned, there will often be new things that you can discuss with them.

Party banter between the NPC party members happens generally after resting or when entering specific areas*. As Darrk noted, you can get more convo options (that you initiate yourself) after certain events.

*edit The banter consists mainly of just a few comments (usually sarcastic style) as opposed to long expositions.