Mortgage Refinances Surge to Highest Level since April 2009

Mortgage Refinances Surge to Highest Level since April 2009

The Los Angeles Times (10/4, Reckard, 629K) reports, "Reacting to record low mortgage rates, borrowers seeking to lower their monthly payments signed up for lower-cost replacement loans last week in numbers not seen in 3½ years." The MBA said that applications for new mortgages, that is, to purchase homes, increased by nearly 4%. Commenting on the data, MBA economist Mike Fratantoni said, "Financial markets continue to adjust to QE3, as the ongoing presence of the Federal Reserve as a significant buyer of mortgage-backed securities applies downward pressure on rates."