According to the Mortgage Bankers Association’s Weekly Applications Survey, refinance activity surged last week as mortgage rates continued to fall. The Refinance Index increased 20 percent from the previous week and helped the Market Composite Index, which measures both refinance and purchase application volume, rise 16.6 percent. Michael Fratantoni, MBA’s vice president of research and economics, said refinance application volume jumped to the highest level in more than three years as mortgage rates fell to another record low. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances dropped to 3.53 percent from 3.63 percent the previous week. The seasonally adjusted Purchase Index increased 4.0 percent. More here and here.