Lower Rates Trigger Jump in Mortgage Applications

Mortgage applications surged 12 percent last week on lower interest rates, the Mortgage Bankers Association reports.

The refinance index grew 11 percent last week, according to the MBA’s seasonally adjusted index.

Applications for home purchases — viewed as a leading gauge of future home buying — edged up 12 percent for the week.

Meanwhile, mortgage rates fell last week, with the 30-year fixed-rate mortgage dropping from 4.72 percent to 4.66 percent last week.

Source: “Mortgage Applications Surge on Lower Rates,” CNBC (Jan. 15, 2014) and “U.S. Mortgage Applications Volume Jumped Last Week,” The Wall Street Journal (Jan. 15, 2014)