Scramble to Refinance as Home Prices Collapse

Friday, March 28, 2008 11:58 a.m. EDT

The volume of mortgage applications soared 48.1 percent last week — driven by homeowner refinancing — and economists believe most of the loans will be approved by lenders.
Research from the Mortgage Bankers Association in Washington, D.C., indicates that its application index increased to nearly 966 from 652 the previous week.

Application volume soared on an 82 percent increase in refinance application volume during the week. Purchase volume increased by 10.6 percent.

"Refinance applications accounted for 62 percent of all applications, after dipping below 50 percent last week for the first time all year,â€