Refinancing Increases on Low Interest Rates

Washington, DC, Aug. 18, 2010--Mortgage applications rose last week as historically low interest rates lifted demand for home refinancing loans to its highest level in 15 months, the Mortgage Bankers Association said on Wednesday.

The MBA said index of mortgage applications, which includes both purchase and refinance loans, for the week ended Aug. 13, increased 13.0%. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 2.6%.

The index of refinancing applications increased 17.1%, the highest since the week ended May 15, 2009.

The MBA said fixed 15-year mortgage rates averaged 3.99%, up from the previous week's record low of 3.95%.