Home Loan Applications Surge On Low Rates

The Mortgage Bankers Association reported a 112 percent spike in mortgage application volume as interest rates for 30-year mortgages dropped to 5.47 percent during the week ended Nov. 28.

Statistics in the MBA's weekly mortgage application survey were adjusted for the short holiday week. Unadjusted, application volume rose by more than 51 percent, but was still down nearly 22 percent compared to the same week a year ago.

Home buyers on the sidelines waiting for further interest rate drops before completing mortgage applications were credited with the surge. Rates on 15-year fixed mortgages fell to 5.13 percent during the week.