Demand for home loans soared last week as interest rates took a temporary dip. Overall mortgage application activity — accounting for applications for refinancings and home loans — climbed 11.3 percent on a seasonally adjusted basis for the week ending Aug. 28, according to the Mortgage Bankers Association. Volume now stands 30 percent higher than a year ago. Broken out, applications for refinancing rose 17 percent week-over-week, reaching the highest level since April. Loan applications for home purchases increased 4 percent. Applications for home purchases are 25 percent higher than a year ago. MBA reports that average interest rates were unchanged from the week before, at a 4.08 percent average for the 30-year fixed-rate mortgage. However, due to global unrest in the stock market, rates moved an eighth of a percent lower for a few days last week, causing a rush among refinancers and buyers to lock in lower rates. By the end of the week, however, rates had regained their ground.

Source: CNBC.com