Mortgage Applications Rise on Refinancing

Washington, DC, Dec. 14, 2011 -- Mortgage application volume in the U.S. last week rose 4.1% from the prior week, the Mortgage Bankers Association said.

Low rates drove a surge in refinance applications.

Refinance activity climbed 9.3% to reach its highest level since Nov. 4. Purchase applications decreased by a seasonally adjusted 8.2%.

The share of refinance applications filed rose to 79.7% of total applications, up from 76% the previous week.

The average rate on 30-year fixed-rate mortgages fell to 4.12%, the lowest rate this year, from 4.18%.