The Real Deal Miami

Refis soar after mortgage rates hit epic lows

August 18, 2010 12:45PM

After showing virtually no momentum earlier this month, U.S. mortgage activity perked up during the week ending Aug. 13, according to the Mortgage Bankers Association, following a decline in mortgage rates. The weekly mortgage application index climbed 13 percent from the previous week, spurred by a significant uptick in refinancings, the report shows. Refis increased 17 percent on the MBA’s index, while mortgage purchases dropped 3.4 percent. The recent drop in fixed mortgage rates likely influenced this activity — last week Freddie Mac reported that the average 30-year mortgage fixed rate had plummeted to 4.44 percent, while the 15-year rate hit a record low of around 3.92. TRD