Refinancings soar 21% as rates slump

August 18, 2004

NEW YORK (Reuters) - New applications for U.S. home loans rose last week while refinancings surged, as 30-year mortgage interest rates fell to their lowest level in over four months, an industry group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted market index, a measure of mortgage activity, rose for the week ending August 13 by 11.9 percent to 689.4 from the previous week's 616.1.

The Washington trade group's seasonally adjusted refinancing index jumped by 20.9 percent to 1,982.7 in the week ended August 13 from the previous week's 1,640.5.

Thirty-year mortgage rates, excluding fees, averaged 5.75 percent, down 0.05 percentage point from the previous week and down 0.47 percentage point from a year ago. The 30-year rates fell to their lowest level since the week of April 2, when they also averaged 5.75 percent.

The Washington trade group's purchase index, a gauge of new loan requests for home purchases, rose last week by 6.2 percent to 467.1 from 440.0 in the prior week.

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