Mortgage applications jumped 10.3% for the week ending Nov. 4, a sign that continued low interest rates are starting to entice consumers, according to new figures compiled by the Mortgage Bankers Association.
Moreover, early Wednesday morning the yield on the benchmark 10-year Treasury bond had fallen below 2% once again as bad news out of Italy spurred an international flight to quality.
MBA reported that refinancing activity rose to 78.6% of all new business, following three weeks of refi declines.
The trade group noted that consumers continued to choose fixed-rate products over ARMs by a ratio of roughly 96% to 4%.
"Treasury rates dropped last week, as renewed turmoil in Europe once again led to a flight to quality, and 30-year mortgage rates dropped to their second lowest level of the year," said Mike Fratantoni, MBA's vice president of research and economics. "Refinance applications jumped more than 12 percent to their highest level in a month and some lenders experienced even larger increases. As has been the case all year, many refinance applicants are opting to deleverage by choosing 15-year mortgages."
MBA's comparison of activity is sequential. It tracks the market through a proprietary index.
