Mortgage Applications Up as Interest Rates Drop

Lower mortgage rates encouraged more applications, pushing the Mortgage Bankers Association applications index up 11.9 percent on an adjusted basis from 379.9 the previous week to 425 last week.

On an unadjusted basis, the index increased 10.5 percent compared with the previous week and was down 40 percent compared with the same week a year ago.

Refinances increased 16.1 percent while conventional purchases rose 6.5 percent and purchases using government loans jumped 15.3 percent.

According to the association, 30-year fixed-rate mortgages decreased to 6.24 percent from 6.47 percent; 15-year fixed-rate mortgages decreased to 5.90 percent from 6.14 percent; 1-year ARMs decreased to 6.18 percent from 6.86 percent.