Mortgage applications rise 7 pct., but rush is to refinance rather than buy homes

Mortgage applications rise 7 pct. as rates fall

WASHINGTON — Applications for home loans rose last week as consumers raced to refinance at the lowest rates in decades.

The Mortgage Bankers Associations says overall applications increased nearly 7 percent from a week earlier.

Applications to refinance home loans were up 9 percent, but new mortgages taken out to purchase homes fell 2 percent. Those applications have fallen in eight out of the last nine weeks. They were 35 percent below last year’s levels.

The average rate for a 30-year fixed loan sank to 4.58 percent last week, according to Freddie Mac. That was the lowest since the mortgage company began keeping records in 1971.