Mortgage Application Volume Hits 5-Month High

Washington, DC, June 16, 2010--Mortgage application volume jumped to a five-month peak last week, with applications to buy homes up from 13-year lows, according to the Mortgage Bankers Association.

Mortgage purchase applications rose 7.3%.

Borrowing costs hovering near record lows sparked a rush last week to cut costs on existing loans, driving the refinance applications index up 21.1% to the highest level in 13 months.

Total home loan applications, up 17.7% in the week, have not been higher since mid-December.

"While it is clear that purchase applications in May dropped sharply as a result of the tax credit induced increase in applications in April, it is unclear whether we are seeing the beginnings of a rebound now," Michael Fratantoni, MBA's vice president of research and economics, said in a press release.