Interest rates remain low, mortgage loan RATE applications up

Despite a drop in mortgage loan applications the previous week, more homeowners last week were looking to refinance existing home loans along with a growing number of new buyers seeking mortgages.For the week ending April 10, the Mortgage Bankers Association reported a drop in mortgage loan application volume, but said that the Easter and Passover holiday weekend could have affected homeowner and buyer trends.However last week, ending April 17, the MBA announced that its Market Composite Index - which is a measure of mortgage loan application volume - hit 1,172.1 which demonstrates a 5.3 percent increase on levels from one week prior. The Refinance Index also edged higher - up 7.7 percent from the previous reading. According to the MBA, refinancing as a percentage of all mortgage activity is now nearly 80 percent.With a slumping residential real estate market having taken a toll on consumers and businesses alike, some of the hardest hit areas include Florida, California and Nevada. But looking back one year, the housing market is beginning to show some signs of life.The MBA reports that mortgage loan application volume is up a whopping 76.9 percent compared to the same time last year.Are homeowners finding the government's programs including Making Home Affordable and first-time homebuyer tax credits enough incentive to look at buying or refinancing an existing home?Perhaps, but many argue that it's low interest rates that are prompting homeowners to refinance.Tom Porcelli, a senior economist at Castlestone Management, is quoted by Bloomberg as saying, "The increase in refinancing is a huge positive. It'll reduce mortgage payments and ultimately give consumers the ammunition to save more or spend a little more."