Homeowners race to refinance as mortgage rates retreat from 23-year highs

AP Business Writer

LOS ANGELES (AP) — A recent pullback in mortgage rates is spurring more homeowners to refinance their home loan and lower their monthly payments. The Mortgage Bankers Association’s refinance index, which tracks home loan application volume, surged 16% last week from the previous week to its highest level in two years, the association said Wednesday. Refinance applications were up nearly 60% versus the same week last year. Despite the lower borrowing costs, applications for loans to buy a home rose only 0.8% from the previous week and were down about 11% from a year earlier, the MBA said.