The sell-off in the stock market was a boon to the mortgage market last week. Mortgage application volume jumped 9 percent on a seasonally adjusted basis for the week, compared with the previous week, according to the Mortgage Bankers Association.
Refinance applications were the driver of total volume. They surged 19 percent from the previous week, seasonally adjusted, but are 40 percent below where they were a year ago, when rates were even lower. Applications to purchase a home fell 2 percent week-to-week, although they are 17 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 59.1 percent of total applications from 55.8 percent the previous week.