Despite many other problems with the current economy in the U.S., mortgage loan applications for new home purchases and refinancing remain strong.
Applications in the last week from people planning to buy a home were 19.1% higher year-over-year. However, as average fixed-rate mortgages keep dropping, the number of refinancing applications continues to explode.
Homeowners with good credit can now find fixed-rates for 30-year loans under 3%. As a result, refinancing applications in the past week constituted 64% of all the borrowing activity.