Record low interest rates continue to pump up mortgage volume, as more borrowers try to take advantage.Â
Mortgage applications increased 3.8 percent for the week ending May 18, the Mortgage Bankers Association reports. A boost in more home owners refinancing their mortgages was attributed to the rise last week.Â
Refinance application activity increased 5.6 percent, reaching a nearly four-month high. Meanwhile, applications for home purchases dropped 3 percent in the week, the Mortgage Bankers Association reports.Â
"Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market,â€ says Michael Fratantoni, MBA's vice president of research and economics.Â â€œAs a result, applications for refinance loans have increased for the third straight week and are at the highest level since February of this year."
Source: â€œRecord low rates spur mortgage application filings,â€ HousingWire (May 23, 2012)