Low rates spur refi boom

Demand for purchase loans down 39% from last year

Record-low mortgage rates have sparked another refinancing boom but aren’t doing much to spur homebuyers into action, according to the results of the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey.

Demand for refinancings was up nearly 6 percent during the week ending Aug. 20 when compared to the previous week, and down 26 percent from four weeks ago, reaching the highest level since May 2009.