Oct. 3 (Bloomberg) -- Mortgage applications in the U.S. climbed last week to the highest level in more than three years as borrowing costs dropped to a record low.
The Mortgage Bankers Association’s index jumped 16.6 percent in the period ended Sept. 28 from the prior week to reach the highest point since April 2009, the Washington-based group said today. Purchase applications rose 3.9 percent and refinancing surged 19.6 percent.
The average rate on a 30-year fixed loan fell to 3.53 percent, an all-time low in the series dating back to 1990, from 3.63 percent the prior week. Borrowing costs on a 15-year fixed mortgage decreased to 2.90 percent from 2.98 percent.
The share of applicants seeking to refinance a loan rose to 83.3 percent, the most since January 2009, from 81.2 percent the previous week.
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