Mortgage applications jump 11.6% as refinancing surges

Mortgage applications in the U.S. soared last week as a plunge in borrowing costs led to biggest gain in home refinancing since January 2012.

The Mortgage Bankers Association's index rose 11.6 percent in the period ended Oct. 17, the biggest gain since January, after a 5.6 percent advance the week before, figures from the Washington-based group showed today.

The refinancing gauge jumped 23.3 percent while the purchase applications measure dropped 4.6 percent.

The average rate on a 30-year fixed loan declined for a fourth week to 4.10 percent, the lowest since May 2013, from 4.20 percent. The average on a 15-year mortgage fell to 3.28 percent from 3.41 percent.

The share of applicants seeking to refinance rose to 65 percent, the highest since mid-December, from the prior week's 58.9 percent.

To contact Bloomberg News staff for this story: Danielle Trubow in Washington at dtrubowbloomberg.net To contact the editors responsible for this story: Carlos Torres at ctorres2bloomberg.net Vince Golle