As borrowers continue to capitalize on record low mortgage rates, loan activity spiked during the week ending June 8.
Mortgage application activity, including purchase and refinance requests, rose 18 percent from a week earlier, according to a report from the Mortgage Bankers Association. Specifically, refinancing increased to a 79 percent share of all activity. This was slightly higher than a week earlier, when the share stood at 78 percent.
"Refinance volume increased as borrowers were able to lock in at mortgage rates below 4 percent, and purchase application volume was its highest level in over six months," said MBA vice president of research and economics Michael Fratantoni. "HARP volume has been steady in recent weeks at about 28 percent of refinance applications."
This increase in activity occurred just after mortgage rates reached new all-time lows. During the week ending June 7, the rate for a 30-year fixed-rate mortgage fell to just 3.67 percent. Meanwhile, mortgage records show the rate for a 15-year FRM dipped to 2.94 percent. This was the sixth consecutive week both rates have declined to new lows.