MORTGAGE REFINANCE DEMAND SURGED 6%, AS RATES DROPPED TO THE LOWEST LEVEL SINCE SEPTEMBER

Mortgage interest rates dropped again last week, and while that did little to bolster demand from homebuyers, it did send homeowners looking for savings on their monthly payments.

Applications to refinance a home loan jumped 6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume, however, was still 85% lower than the same week one year ago.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 6.34% from 6.42%, with points decreasing to 0.59 from 0.64 (including the origination fee) for loans with a 20% down payment.