Refinancing drove an increase in applications for home mortgages during the past last week, the Mortgage Bankers Association reported Wednesday.
A decrease in interest rates to their lowest level this year also spurred homeowners to seek better mortgage deals in the week ended Aug. 5, the industry group said. Refinancing increased to 75.6 percent of total applications from 70.1 percent the previous week.
The group's seasonally adjusted index of refinancing applications rose 30.4 percent to its highest level this year, while the gauge of loan requests for home purchases fell 0.9 percent. Total mortgage application activity — refinancing and home buying — was up 21.7 percent, the banking group said.