Refinances Spike 12%, Driving Mortgage Applications

CNBC reports that mortgage refinances grew 12% last week compared to the week before, making up the bulk of the 5.3% total rise in mortgage application volume.

Total mortgage application volume rose 5.3% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 46.5% higher than a year ago, when rates were significantly higher.

Refinances drove the volume, rising 12% for the week and a stunning 116% from one year ago. Refinances are highly sensitive to even small interest rate moves, and last week’s was significant.

Mortgage applications to purchase a home got no boost from those lower rates. They fell 2% for the week, the fourth straight decrease. Purchase volume was still 7% higher than a year ago.

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