Mortgage Applications Up on Refinancings

Washington, DC, January 8, 2008—Propelled by heavy refinancing activity, mortgage applications rose 32.2 over the previous week, according to the weekly survey by the Mortgage Bankers Association.

The survey covered the week ending Jan. 4.

Interest rates on fixed-rate mortgages also dropped last week.

Total mortgage applications were up 8.7 percent compared with the same week a year ago, the MBA said.

Refinancing applications increased 53.9 percent on a week-to-week basis, while purchase applications rose 14.7 percent.

Refinancing accounted for 57.7% of all applications, up from 50.9 percent the previous week.

The rate on 30-year fixed-rate mortgages averaged 5.73 percent last week, down from 6.05 percent the previous week. The rate for 15-year fixed-rate mortgages averaged 5.21 percent, down from 5.6 percent