Mortgage refinance demand jumped last week: MBA

Wed Dec 14, 2011 7:09am EST

(Reuters) - Applications for refinancing on home mortgages jumped last week, even as demand for new home purchases dried up, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 4.1 percent in the week ended Dec 9.

The MBA's seasonally adjusted index of refinancing applications climbed 9.3 percent, while the gauge of loan requests for home purchases tumbled 8.2 percent.

The refinance share of total mortgage activity rose to 79.7 percent of applications from 76.0 percent the week before.

Fixed 30-year mortgage rates averaged 4.12 percent, down 6 basis points from 4.18 percent the week before. It was the lowest rate this year, MBA said.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

(Reporting By Leah Schnurr; Editing by Leslie Adler)

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Comments (1)
garilou wrote:
I would do the same even if I did not need it:
as long as the “loop hole” exists, and that the interests are deductible, I’d take that money to buy a car or payback any credit card debt (if I had any).
Pretty sure that only the “70 to 90% ” will ask to refinance.

Dec 14, 2011 12:56pm EST  --  Report as abuse
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