Last week’s rates went down to their two-year low and that prompted for an increase in activity by borrowers. According to a report by Mortgage Bankers Association, applications for mortgages to purchase new homes rose by 22 percent compared to a week before. Refinancing applications went up as well by 32 percent.
This has been triggered by two things: low interest rates and very low property prices because of a bad housing market. Borrowers are trying to take advantage of a buyers housing market while interest rates are down as well. Refinancing deals are up also since many borrowers will see their monthly payments go up next year due to ARM type mortgages.