Mortgage Applications Rise As Refinancing Jumps

02/14/2009 05:12 am ET | Updated May 25, 2011

NEW YORK (Reuters) - Mortgage applications jumped in the first full week of 2009 as record low interest rates spurred the greatest demand for home refinancing loans in over 5-1/2 years, data from an industry group showed on Wednesday.

Low mortgage rates, however, have yet to fuel demand for loans to purchase homes.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended January 9 increased 15.8 percent to 1,324.8, the highest reading since the week ended July 11, 2003, when it reached 1,358.2.

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