Mortgage Applications Grow, Rates Stay Low

Mortgage applications grow as interest rates stay low. The latest composite mortgage application index from the Mortgage Bankers Association shows a rise of 5.0 percent for the week ending January 14, with refinancing active rising 7.7 percent. The purchase component of the index dropped 1.9 percent from a week earlier. Increased refi activity is likely due to persistently low interest rates -- the average 30-year-fixed mortgage interest rate fell 0.01 percent last week, to 4.77 percent -- while the lagging number of purchase mortgages is likely due to still-suffering home values and lingering unemployment.