Mortgage applications continue rise

April 09, 2009|Associated Press

WASHINGTON - Mortgage applications continued to rise last week, as low interest rates allowed borrowers to refinance their home loans at the lowest rates in decades.

The Mortgage Bankers Association said yesterday its seasonally adjusted weekly application index climbed 4.7 percent for the week ended April 3. The index came in at 1,250.6, up from 1,194.4 a week earlier. It was the highest level of applications since the week ended Jan. 9, when the index hit 1,324.8.

About 78 percent of applications came from borrowers seeking to refinance home loans at lower rates, rather than purchase homes.

The trade group's application index remains below its peak of 1,856.7, reached in May 2003 at the height of the housing boom.

The average rate for traditional, 30-year fixed-rate mortgages increased to 4.73 percent from 4.61 percent a week earlier, according to the MBA report.

The average rate for 15-year fixed-rate mortgages rose to 4.49 percent from 4.45 percent a week earlier, while the average rate for one-year adjustable-rate mortgages increased to 6.23 percent from 6.20 percent.