Interest rates on home loans are now significantly lower than a year ago, and that may be bringing more homeowners back to their lenders to refinance.
Total mortgage applications rose 4.7% last week from the previous week.
The increase in the Mortgage Bankers Association’s seasonally adjusted report was largely due to a 9% weekly jump in applications to refinance. Lenders suddenly have a strong sales pitch, now that rates are significantly lower than they were a year ago.
Rates jumped dramatically following the presidential election and remained higher for much of the past year, until now. Refinances are now down just 10% from a year ago because volume dropped by half for much of last year.