Borrowing Rates Ease, Mortgage Applications Surge.

Mortgage applications rose 7.2% over the past week as borrowing costs eased, according to the Mortgage Bankers Association's Market Composite Index. However, the increase remained well below levels from a year ago when borrowing rates were more than a percentage point lower. Refinance applications rose by a slim margin of 6% over the past week, which was less than a third of all applications. Elevated rates have reduced the benefit of a rate/term refinance for many borrowers and continue to discourage cash-out refinances as borrowers are unwilling to give up their lower rates.