Mortgage Applications Rise as Rates Drop Below 5%

A 45.7 % jump in applications was recorded

Applications for U.S. home mortgages soared last week as fixed mortgage rates dropped below the key 5 percent level, as demand for refinancings surged, an industry group reported on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity jumped 45.7 percent to 875.3 in the week ended Feb. 13.

It was the highest reading since Jan. 16, and coincided with a 0.2 percentage point drop in average 30-year mortgage rates over the past week to 4.99 percent, the MBA said in a statement.

The increase was mostly due to refinancings of mortgages, with the MBA’s index of such loans climbing 64.3 percent to 4,472.9.

The gauge of loan requests for home purchases rose 9.1 percent to 257.3, the MBA said.