Mortgage refinance demand surges, as interest rates drop further

A planned development is seen in Ashburn, Virginia, on Aug

Andrew Caballero-Reynolds | AFP | Getty ImagesMortgage rates fell last week to the lowest level since April, leading current owners to seek savings

Applications to refinance a loan rose 7% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index

That rate is 24 basis points lower than the same week one year ago. "This decline mpted an increase in refinance applications, driven by a 10 percent increase in conventional applications and a 22 percent increase in VA refinance applications," said Joel Kan, vice president and deputy chief economist at the MBA. "As borrowers with larger loans tend to be more sensitive to rate changes, the average loan size for a refinance application increased to $313,700 after averaging less than $300,000 for the past six weeks. "buyers, however, were less driven by the drop in rates

Applications for a mortgage to purchase a increased just 0. 1% for the week and were 16% higher than the same week one year ago. "Purchase activity was essentially flat over the week, as overall uncertainty continues to hold buyers out of the market," added Kan

Mortgage rates fell further to start this week, according to a separate survey from Mortgage News Daily

They were then flat Tuesday, ing the release of job openings data which showed another increase. "Rates typically move higher if job openings are higher than expected, all else equal," wrote Matthew Graham, chief operating officer at Mortgage News Daily, adding that this data-driven volatility is nothing compared with what could be seen on Thursday ing the government's release of the monthly employment report

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