Mortgage rates posted a sharp drop last week, which sparked a refinancing rush among home owners, the Mortgage Bankers Association reported Wednesday.
Mortgage application volume, including applications for refinancings and home purchases, surged 9.3 percent week over week on a seasonally adjusted basis.
The gains were almost all attributed to refinancing applications, which posted a 16 percent week-to-week increase. Applications for home purchases rised just 0.2 percent. Still, purchase applications are 25 percent higher than a year ago, the MBA reports.
Source: “Wealthy Borrowers Behind 9.3% Jump in New Mortgages,” CNBC (2/10/16)