A 9 basis point drop in 30-year fixed rates triggers 5% jump in refinance applications

Conventional refinance applications increased after a five-week decline. The refinance index rose 5% from the previous week and the refinance share of total mortgage applications grew to 45.5% from 44.3%. This activity was supported by a dip in mortgage rates, which were driven by Middle East instability and its impact on energy and commodity prices. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.42% from 6.51%.