Mortgage Applications Plunge 37% as Refinancings Rise

It's time to find some patience because home sales aren't likely to rebound significantly this selling season, new mortgage data indicates.

The Mortgage Bankers Association reported a 37 percent drop in applications for home loans last week compared to the same week in 2009.

Even though the weekly survey -- an index measuring mortgage volume -- was up a seasonally adjusted 1.8 percent from the previous week, experts warn that the continuing low levels of mortgage applications could mean a prolonged recovery for home sales numbers.

Waning applications is an indicator that home sales are unlikely to increase in August or September, Michael Fratantoni, MBA's vice president of research and economics, said in a press release.

But there's one good piece of news for the consumer: With interest rates historically low (and amazingly falling even lower), buyers are racing to take advantage of refinancing options.