Refinancing Rises as Mortgage Rates Drop

There's gold in them thar refinances! The Refinance Index rose 21.0 percent from the previous week, according to data from the Mortgage Bankers Association, bringing refi application volumes in line with their highest levels for the year. Meanwhile, the seasonally adjusted Purchase Index dropped 8.5 percent from a week earlier. The refinance boom is related to basement-low 30-year mortgage rates, which averaged 4.21 for the week, an all-time low. But clearly low rates alone cannot kick-start a home-buying spree, since many new borrowers likely are not qualifying for these great deals due to low credit scores or insufficient income. (Click on "Full Story" below for a full-size version of the chart above.)

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