Home Refinancing Surges on Lower Rates

Washington, DC, Sept. 9, 2009--Falling interest rates caused mortgage applications to surge a seasonally adjusted 17% last week from the previous week, the Mortgage Bankers Association reported Wednesday.

Application volume was up 64.5% for the week ended Sept. 4 compared with the same week in 2008, according to MBA's latest weekly survey.

Week-to-week filings fell a seasonally adjusted 2.2% in the week ended Aug. 28.

Refinancing applications were up 22.5% last week from the prior week-- the biggest jump since mid-March. And applications for mortgages to buy homes were up a seasonally adjusted 9.5% -- the largest such gain since early April.

The four-week moving average for all mortgages was up 7% on a seasonally adjusted basis, the MBA said.

Refinancings made up 59.8% of all applications last week, up from 56.5% the previous week, while adjustable-rate mortgages accounted for 5.8%, up from 5.6%.

The average rate on 30-year fixed-rate mortgages was 5.02% last week, down from 5.15% the week before. Fifteen-year fixed-rate mortgages averaged 4.45%, down from 4.57% the previous week, with one-year ARMs averaging 6.69%, down from 6.71%.