Refi activity spikes over low mortgage rates

Mortgage rates’ continued decline spurred a nationwide uptick in mortgage refinancing applications during the week ending May 21, according to the Mortgage Bankers Association. Despite a 3.3 percent decline in the number of new mortgage purchase applications, refinancing jumped 17 percent week-over-week, as the average 30-year fixed mortgage rate dropped from 4.83 percent to 4.8 percent. Michael Fratantoni, vice president of research and economics with the MBA, said that the low mortgage rates were causing a spike in activity. “Refinance application volume jumped last week as continuing financial market turmoil related to the budget crises in Europe extended the opportunity for homeowners to lock in at historically low mortgage rates,” Fratantoni said. TRD