Mortgage Applications Continue To Surge

Washington, DC, Dec. 24, 2008--With mortgage rates approaching record lows, the volume of applications filed for mortgages jumped a seasonally adjusted 48% last week compared with the previous week, according to the Mortgage Bankers Association's weekly survey.

Applications for the week ended Dec. 19 ran 124.6% ahead of the mortgage activity seen during the same week last year, the MBA said.

The boost in applications coincided with another drop in mortgage rates, as the government's efforts to thaw out the home-mortgage market show further signs of having the desired effect.

The refinance share of applications increased to 83.2 percent from 76.9 percent the previous week.

According to the MBA's survey, rates on 30-year fixed-rate mortgages averaged 5.04% last week, down from 5.18% the previous week. This interest rate hasn't been lower since the 4.99% average rate seen for the week ended June 13, 2003.

Fifteen-year fixed-rate mortgages averaged 4.91%, down from 4.93% the week before. And one-year ARMs averaged 6.36%, down from 6.63%.