Home Refinancing Rebounds as Rates Drop

Washington, DC, Aug. 19, 2009--Swings in mortgage rates over the past month have resulted in "seesaw-like activity" in the volume of refinancing applications, the Mortgage Bankers Association said Wednesday.

For the week ended Aug. 14, applications to refinance existing home loans were up 6.9%, a reversal from the 7.2% drop seen the week before, according to the MBA's weekly survey. See related story.

Applications to finance the purchase of homes rose for the third week in a row, increasing a seasonally adjusted 3.9% from the week ended Aug. 7.

The latest drop in mortgage rates resulted in a seasonally adjusted 5.6% increase in mortgage application volumes overall on a week-to-week basis.

Applications filed last week were up an unadjusted 25% compared with the same week last year, the MBA said.

Refinancings made up 53.3% of all applications last week, up from 52.3% the week before, the MBA said.

Rates on 30-year fixed-rate mortgages averaged 5.15%, down from 5.38% the week before, and rates on 15-year fixed-rate mortgages averaged 4.52%, down from 4.71%.