The Mortgage Bankers Association (MBA) reported that applications for a mortgage refinance rose by 26.4 percent during the week ending January 13, 2012 compared to the previous week.

The MBA’s Refinance Index reached the highest level since August 8, 2011 and the refinance share of mortgage applications rose to 82.2 percent.

“Interest rates dropped last week due to continuing anxieties regarding the fragile economic situation in Europe,” said Michael Fratantoni, MBA’s vice president of research and economics.  “With mortgage rates reaching new lows, refinance volume jumped and MBA’s refinance index reached its highest level in the last six months.”

According to HSH.com, the average rate for a 30-year fixed-rate home loan was 4.19 percent. Mortgage rates

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Mortgage refinance applications surged for the second week in a row, according to the Mortgage Bankers Association (MBA), fueled by a drop in mortgage rates.

The MBA’s Weekly Mortgage Applications Survey showed that refinance applications increased by 9.3 percent during the week ending December 9, 2011 compared to the previous week. This represents the highest level of home refinance applications since November 4, 2011. The refinance share of all mortgage applications rose to 79.7 percent.

According to HSH.com, the average rate for a 30-year fixed-rate home loan was 4.31 percent, while mortgage rates for a 15-year home loan dipped to 3.62 percent. Rates on a 5/1 adjustable rate mortgage dropped to 3.09 percent.

Mortgage refinance rates in 2012

Economists are looking back at the volatile U.S. economy of 2011 and developing forecasts for 2012. Most economists assume mortgage rates will stay low, at least in the beginning of the year.

“Thirty-year fixed-rate conforming mortgages have hovered around 4.0 percent (or lower) during the fourth quarter to-date thanks in large part to the Federal Reserve’s Maturity Extension

Program and its stated intent to push and keep long-term rates low,” says Frank E. Nothaft

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