Rush To Refinance Mortgages Continues

Washington, DC, Jan. 14, 2009--Applications filed to refinance existing mortgages rose to the highest level in more than five years, according to the Mortgage Bankers Association.

Interest in refinancings rose as the average rate on 15-year fixed-rate mortgages continued to move lower, down to 4.63% last week from 4.67% the previous week.

And the average rate on 30-year fixed-rate mortgages fell to 4.89% -- the lowest rate since the MBA began its survey in 1990. The 30-year's previous low was 4.99%, for the week ended June 13, 2003.

Refinancing filings rose 25.6% last week compared with the week before. The MBA's refinance index hasn't been higher since the week ended June 27, 2003.
However, applications seeking mortgages to purchase homes fell a seasonally adjusted 14.1% on a week-to-week basis.

Also on a seasonally adjusted basis, the total volume of applications filed rose 15.8% compared with the previous week.

Refinancings made up 85.3% of all applications last week, up from 79.8% the previous week.