"The economy appears to be growing, albeit very slowly," said Phil Colling, economist with the Mortgage Bankers Association of America. "This growth, combined with stock-market losses and no signs of inflation, has pushed interest rates down. ... Until there is economic news that leads to a significant and sustained stock-market rally, we can expect interest rates to remain near their current levels."
Low mortgage rates are feeding a boom in mortgage refinancing. The mortgage bankers association reported Wednesday that mortgage-loan applications reached a record level last week, when refinancing activity accounted for 77.9 percent of applications.
