Mortgage Applications rise as Rates dip

Applications for mortgages jump 1.3% as borrowing costs ease a tad, making homes more affordable and decision to refinance easier.

NEW YORK — A dip in mortgage rates gave Americans a good reason to take out home-related loans last week, as applications for mortgages jumped 1.3%, according to the Mortgage Bankers Association.

The jump in seasonally adjusted mortgage applications for the week ended August 3 came as the interest rate on 30-year fixed mortgages fell to 4.73%, from a 2013 high of 4.80% a week ago, the MBA said.

However, much of the gains came from the refinance index, which jumped 2% from the previous week. Applications for the purchase index actually dropped 0.4%. The refinance index's share of total applications climbed to 61%, up from 60% in the prior week.

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