May 22nd, 2012 2:16 PM by Lori Speight
Mortgage applications soared 9.2 percent last week, as more Americans sought to take advantage of record low mortgage rates, according to the Mortgage Bankers Association’s weekly report.
The surge in mortgage applications last week was attributed to a jump in refinance applications, which rose 13 percent for the week. Refinance applications make up nearly 75 percent of all mortgage applications.
Meanwhile, mortgage applications for home purchases dropped 2.4 percent last week.
“Low rates have convinced many home owners to refinance their mortgages, though tougher lending requirements still keep many prospective home buyers from taking out new debt,” The Wall Street Journal reports.
Source: “Mortgage Application Volume Rose 9.2% Last Week: MBA,” The Wall Street Journal (May 16, 2012)