Mortgage applications rose 9.3% this past week as borrowers refinanced their
home loans at exceptionally low interest rates.

The Mortgage Bankers Association said refinancing apps grew
dramatically, with the refi index jumping 11.2%, after the Fed announced it
would move its portfolio towards longer-term Treasury securities.

Meanwhile, the purchase index grew 2.6%, suggesting an increase in new home
applications at the lower interest rates.

“With lower rates, refinance application volume increased to its highest
level since August 19, 2011,” said Mike Fratantoni, the MBA’s vice president of
research and economics.¬† “Purchase application volume also increased. However,
the increase was in conventional purchase applications, which were up by 4.9
percent. Purchase applications for government loans fell by 0.6 percent over the
week, likely influenced by the pending decline in FHA loan limits.”

The refinancing share of mortgage activity grew to 79.7% of all applications,
up from 78.3% the previous week..MORE