New mortgage applications rose almost 7% for the week ending April 7 thanks to falling interest rates, which spiked a surge in refinancings, including HARP activity.
According to new figures compiled by the Mortgage Bankers Association, refis accounted for 75.2% of new business, compared to 70.5% the week before.
The trade group said the sovereign debt crisis in Europe caused rates to fall “with the 30-year rate tying our survey low, reached in early February.” (Application volume had been falling for several weeks.)
MBA blamed the sharp drop in purchase applications on a 23% decline in FHA purchase loans.
The government’s HARP program is beginning to gain traction, MBA said, accounting for 32% of all refi applications during the week.
The trade group tracks applications through a proprietary index.
