Mortgage applications are on the rise right now, heading higher as people become interested in taking advantage of relatively low interest rates. While mortgage rates have risen recently, they are still low as compared to last year. It appears as though some are realizing that the low rates won’t last forever, and are hurrying to take advantage of what they can. MarketWatch reports on the increase in mortgage applications:

The volume of applications seeking to refinance existing mortgages was up 4.0% last week compared with the week before, while applications filed for loans to purchase homes also increased, up a seasonally adjusted 1.3%. …

Refinancings made up 55.5% of all applications last week, up from 54.9% the week before. Adjustable-rate mortgages accounted for 4.8%, down from 5.0%, the MBA said.

It is clear that many homeowners are interested in refinancing. Refinancing can lead to lower payments, and less money paid overall in interest costs. Additionally, for those with ARMs, refinancing can mean the avoidance of an expensive reset. It is interesting that ARMs are declining in popularity. It appears that some have learned a lesson about adjustable rate mortgages and teaser rates.