( They should be out looking at properties and sitting down to make offers )

Demand for mortgages surged last week, hitting its highest level in nearly four years as interest rates fell, the Mortgage Bankers Association reported today.

Mortgage application volume reached 906.4, an increase of 28.4 percent on a seasonally adjusted basis, up from 706 one week earlier. On an unadjusted basis, the index increased 64.8 percent compared with the previous week, which was shortened by the New Year holiday and was up 39 percent compared with the same week a year ago.

The refinance share of mortgage activity increased to 62.7 percent of total applications, up from 57.7 percent the previous week.

Adjustable-rate mortgages were only 9.2 percent of total applications.

Meanwhile, mortgage rates slipped during the week. They were:

• 30-year fixed-rate mortgages decreased to 5.62 percent from 5.73 percent.
• 15-year fixed-rate mortgages decreased to 5.07 percent from 5.21 percent.
• 1-year ARMs decreased to 5.77 percent from 6.04 percent