Mortgage Refinancing Soars on Lower Rates

Washington, DC, Sept. 17, 2008--Mortgage applications surged last week as refinancing soared on falling interest rates.

The Mortgage Bankers Association's index of applications to buy a home or refinance a loan increased 33.4 percent to the highest level since May. The group's refinancing gauge climbed 88 percent, the biggest gain since 2001, and the purchase index rose 2.4 percent.

The share of applicants seeking to refinance loans rose to 51.6 percent of total applications, the most since April, from 36.3 percent the week ended Sept. 5. The fixed-rate index jumped 37 percent, while the measure for adjustable loans fell 17 percent.

The average rate on a 30-year fixed loan fell to 5.82 percent last week, a five-month low, from 6.06 percent, today's report showed.

The average rate on a 15-year fixed mortgage decreased to 5.54 percent from 5.73 percent. The rate on a one-year adjustable loan fell to 6.95 percent from 7 percent.