Nation: Mortgage Applications Hit Two-Month High

With interest rates falling, the number of mortgage applications rose 7.3 percent on a seasonally adjusted basis in the week ending March 2. Application volumes last week rose about 16 percent from the same week a year ago, reported by the Mortgage Bankers Association. The number of applications for loans to buy homes rose 1 percent on a week-to-week basis and about 2 percent from a year ago. Although foreclosure rates are driving some lenders out of business, applications for loans to refinance existing mortgages increased 15 percent to the highest level seen in 12 weeks. Refinancing loans were up about 38 percent compared with this time last year. the average rate for 30-year fixed-rate loans dropped to 6.04 percent--the lowest rate in 11 weeks. The rate for 15-year fixed- averaged 5.73 percent, the lowest in 13 weeks. The Mortgage Bankers Association covers about half of all mortgages in the US.