Mortgage rates lowest since 2005, refinancing jumps

From USAToday:

NEW YORK (Reuters) — Applications for home mortgages jumped to their highest level in a month last week as concerns about recession pushed interest rates to their lowest in more than two years, an industry group said Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 32.2% to 706 the week ended Jan. 4, led by refinancings. It was the highest level of activity since the first week of December. The average 30-year fixed mortgage rate eased 0.32 percentage point to 5.73%, the MBA says. The 30-year rate was the lowest since 5.72% the week ended Sept. 9, 2005.