Mortgage applications rise 4.9 percent on low rates

A trade group says mortgage applications rose 4.9 percent last week as more borrowers refinanced at the lowest rates in decades.

The Mortgage Bankers Association said Wednesday the gain was fueled by a 5.7 percent increase in refinancing applications. The number of loans taken out to purchase homes edged up by less than 1 percent.

The numbers are adjusted for seasonal factors.

While refinancing is at its highest level since May 2009, low mortgage rates have done little to boost home sales, which have been hurt by high unemployment, slow job growth and strict credit standards.

Rates have fallen since spring as investors sought the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields.

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