Mortgage application volume increased 8.5 percent last week, as more borrowers refinanced loans to lock in interest rates near record lows, the Mortgage Bankers Association reported today. Refinancing activity jumped 11.1 percent on an adjusted basis during the week ending Dec. 4, compared with the previous week. Purchase volume rose 4 percent. Customers looking to refinance existing mortgages accounted for 74.4 percent of total applications, up from 72.1 percent the previous week.
The first uptick in interest rates in six weeks might have also pushed borrowers to lock in rates now. The average rate for a traditional, 30-year fixed-rate mortgage increased to 4.88 percent last week from 4.79 percent the week before.The average interest rate on a 15-year fixed-rate mortgage increased slightly to 4.33 percent from 4.27
source: The Columbian