Refinancing Drives Mortgage Applications Up
December 9, 2009 - Total mortgage applications rose 8.5% last week, hitting its highest level in nearly two months. According to a weekly application survey conducted by the Mortgage Bankers Association (MBA), nearly three out of every four loans requested last week were for refinancing, a 2% increase from the week prior.
Moreover, last week indicated that requests for refinancing applications rose 11.1%, a jump possibly brought on by historically low interest rates. The MBA also released that the seasonally adjusted Purchase Index was up 4% for the week.
Market rates have begun a climb upward, marking the end of a six-week decline. The average thirty-year fixed rate has risen to 4.88%, a near tenth increase from the week before. Since borrowing costs still continue to be at historic lows, many are trying to lock in low interest rates before they begin to scale any higher.