Increasing volume and lower fees on Loan Apps

Mortgage application volume is up 3 percent since last week with the help of falling interest rates, reports the Mortgage Bankers Association.

The 4.5 percent increase in refinancings led the gain, followed by a 1.4 percent rise in the purchase-loan index.  The result was a rise in refinance applications to 52.4 percent since last week, and ARM activity rising to 17.3 percent.

Following five straight weeks of gains, borrowing costs have fell across the board.  The average rate on a 30 year fixed rate mortgage dropped 29 points, down to 5.98 percent.  The average rate on a 15 year fixed loan fell a huge 41 points, from 5.77 percent to a 5.26 percent.