Borrowers back: New applications leap 17 percent

According to a survey by the Mortgage Bankers Association new mortgage loan applications stateside shot up nearly 17 percent last week as borrowers poured back into the mortgage market.

It seems as though people were waiting last week for the prime interest rate to be cut by the feds before making their move especially those who needed to refinance.

According to the mortgage lending giant Freddie Mac the rates for a 30-year fixed rate mortgage fell from 6.46 percent down to 6.06 percent from the week previous.

The report by the MBA showed that refinancing accounted for 56.9 percent of all applications this is up from 42.6 percent the week previous.

Although this has given us a slightly brighter outlook, new application were still 30 percent down on the same week in 2007.

Source: money.cnn