Mortgage applications shot up 1.5 percent week over week, though it looks like applications were strong just before last week's big rate drop. The Mortgage Bankers Association reported the increase with CNBC pointing out the .04 percent decrease for 30-year fixed-rate mortgages occurred later on in the week.
"Refinance volume is much stronger overall right now, because mortgage rates are about a full percentage point lower than they were a year ago," according to CNBC.
"Last week appears to have been the calm before the storm. Weaker readings on economic growth caused a slight drop in mortgage rates, bringing them back to their level two weeks ago, but applications overall moved 1.5 percent higher," said Mike Fratantoni, MBA’s senior vice president and chief economist, according to the report.
As reported earlier this week, mortgage applications to purchase a home were 10 percent higher annually as of last week. Purchase activity is still struggling a bit due to a lack of inventory.
To learn more about the spike in mortgage applications, click here.