The Mortgage Bankers Association indicated in a survey that mortgage application activity recently increased during the week ending January 13.
According to the MBA's Weekly Applications Survey, mortgage application filings spiked 23.1 percent during the week as interest rates edged lower.
"Interest rates dropped last week due to continuing anxieties regarding the fragile economic situation in Europe," said MBA vice president of research and economics Michael Fratantoni. "With mortgage rates reaching new lows, refinance volume jumped and MBA's refinance index reached its highest level in the last six months."
The mortgage records from the survey showed that refinancing activity increased by 26.4 percent and accounted for 82.2 percent of application activity. Last week, refinancing held an 80.8 percent share.
Additionally, the interest rate for a 30-year fixed-rate mortgage with a conforming loan limit averaged 4.06 percent during the week, after falling from 4.11 percent a week earlier. In addition, the rate for a 30-year FRM with a jumbo loan limit rose from 4.34 to 4.4 percent.