Mortgage Applications Up on Higher Refinancing

Washington, DC, Aug. 17, 2011 -- Mortgage application volume rose 4.1% last week, as homeowners continued to take advantage of low interest rates when refinancing, according to the Mortgage Bankers Association.

The MBA's weekly mortgage applications survey for the week ending Aug. 12 noted the refinance index continued its upward trent last week, rising 8%, but remaining 16.3% below year ago levels.

Meanwhile, the seasonally adjusted purchase index fell 9.1% as potential homebuyers remained on the sidelines.

The average contract interest rate for the 30-year, fixed-rate mortgage fell to 4.32%, down from 4.37% a week earlier, while the 15-year fixed rate declined to 3.47% from 3.52%.