Mortgage Application Volume Up on Refinancing

Washington, DC, May 26, 2010--Mortgage application volume in the U.S. rose last week by the most in a month as homeowners took advantage of lower borrowing costs to refinance.

The 11.3% increase in the Mortgage Bankers Association’s applications index for the week ended May 21 followed a 1.5% drop the previous week.

Refinancing surged 17%, the most since February. Purchase applications fell to the lowest level since 1997.

Falling mortgage rates are prompting more homeowners to refinance. The share of applicants seeking to refinance a loan rose to 72.2% last week from 68.1% the prior week.

The average rate on a 30-year fixed loan fell to 4.80%, the lowest since November, from 4.83%.