Mortgage Application Volume Up on Refinancing

Washington, DC, April 18, 2012 -- Mortgage application volume jumped last week as a drop in interest rates spurred demand for refinancing, according to the Mortgage Bankers Association.

MBA said its seasonally adjusted index of mortgage application activity rose 6.9% in the week ended April 13.

Refinancing applications rose 13.5%, but applications for home purchases dropped 11.2%. It was the second week in a row purchases have declined.

The refinance share of total mortgage activity climbed to 75.2% of applications from 70.5% the week before.

Fixed 30-year mortgage rates averaged 4.05%, down 5 basis points from 4.10%.