Applications for mortgage loans jumped last week, as homeowners took advantage of historically low rates to refinance their homes.
In the week ending July 2, the total number of applications for loans rose 6.7 % on a seasonally adjusted basis from a week earlier, the Mortgage Bankers Association said. A total of 78.7% of the loan applications were to refinance existing homes, the highest proportion since April 2009.
Loan applications to buy a home fell by 2% from a week earlier.
The average contract interest rate for 30-year fixed-rate mortgages rose slightly to 4.68% from 4.67%.
Mortgage Loan Applications Rise on Refinance Demand