Refinancing Up as Mortgage Applications Increase

Washington, DC, March 18, 2009--Mortgage application volume last week rose a seasonally adjusted 21.2% compared with the week before, driven by a surge in refinancing activity, the Mortgage Bankers Association said Wednesday.

Lower interest rates on fixed- and adjustable-rate mortgages attracted homowners as well as people seeking to buy homes.

Application volume for the week ended March 13 was up an unadjusted 31.2% from the same week in 2008, MBA said.

On a week-to-week basis, applications for mortgages to buy homes rose a seasonally adjusted 1.5%, while filings to refinance existing home loans increased 29.6%.

Rates on 30-year fixed-rate mortgages averaged 4.89% last week, down from 4.96% the week before, while the average rate on 15-year fixed-rate mortgages eased to 4.52%, down from 4.54%.