Mortgage Refinancing Continues at High Pace

Washington, DC, Dec. 17, 2008--Applications to refinance existing mortgages increased 2.9% increased  last week compared to the prior week as interest rates remained low, the Mortgage Bankers Association's latest survey showed.

Mortgage activity for the week ended Dec. 12 also increased 2.9%, on an unadjusted basis, from the same week last year.

MBA said Wednesday that refinancings increased 6.5% on a week-to-week basis, as applications for mortgages to buy homes dropped a seasonally adjusted 4.5%.
 
Underscoring how homeowners are showing greater interest in refinancing their mortgages, the MBA's four-week moving average tracking overall mortgage filings showed a seasonally adjusted 17.9% jump, essentially matching this average for the four weeks through Dec. 5.

Applications to refinance existing mortgages accounted for 76.9% of all filings last week, up from 74.3% the previous week.

Rates on 30-year fixed-rate mortgages averaged 5.18% last week, down from the prior week's 5.44%, while the average on 15-year fixed-rate mortgages fell to 4.93% from 5.08%.