Mortgage Applications Hit Three-Month High

Washington, DC, March 9, 2011 -- Mortgage application volume jumped to the highest level in three months last week, according to the Mortgage Bankers Association.

The MBA said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 15.5% in the week ended March 4.

It was the highest level since the week ended December 10.

Refinancing applications rose 17.2%, while loan requests for home purchases rose 12.5%.

"An improving job market is beginning to pave the way for an improving housing market," Michael Fratantoni, MBA's vice president of research and economics, said in a press release.

"Additionally, mortgage interest rates remained below 5% for a second week, maintaining affordability for buyers and leading to an increase in refinance applications."

Fixed 30-year mortgage rates averaged 4.93% in the week, up from 4.84% the week before.