Mortgage Applications for Refinancing Surge

Washington, DC, June 15, 2011 -- Mortgage application volume rose the most in three months, fueled by demand for refinancing as interest rates continued to fall, according to the Mortgage Bankers Association.

MBA said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, surged 13.0% in the week ended June 10, the biggest% gain since March.

The refinancing index spiked up 16.5%, while the gauge of loan requests for home purchases gained 4.5%.

Fixed 30-year mortgage rates averaged 4.51% in the week, off from 4.54% the previous week.

The refinance share of mortgage activity rose to 70.0% of total applications from 67.3% the week before.