Mortgage Applications Grew at Fastest Pace in Last Three Years

U.S. mortgage applications rose +22.5% last week due to a surge in refinancing demand as fixed-rate mortgage interest rates fell to a two year low. The demand hasn't been this high since July 2005, at the height of the housing bubble. Refinancing demand rose 32%, while new purchase demand rose 15%.

Caution should be taken with the data as many borrowers are now submitting more applications than in the past, because concerns about tightening credit conditions have made it harder for consumers to obtain mortgages over the past few months. The larger trend though shows continued slowing in mortgage applications.