Lower Rates Spur Surge in Mortgage Applications

Washington, DC, Aug. 10, 2016 -- Mortgage application volume increased 7.1 percent last week as lower interest rates drove a sharp reversal from the previous week, according to the Mortgage Bankers Association.

Falling interest rates for the second week in a row also spurred a 10 percent increase in mortgage refinance activity from the previous week.

Home purchase applications rose 2.6 percent last week, reversing three-straight weekly declines. The level was nearly 13 percent higher than a year ago.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.65 percent from 3.67 percent.