Mortgage Bankers Association's Refinance Index Jumped 20% Last Week

It appears homeowners have finally gotten off the fence in refinancing their mortgages as interest rates have continued to set fresh record lows. The Mortgage Bankers Association's refinance index jumped 20% last week to hit a 3 1/2-year high while application activity for home purchases rose as well. Rates have hit another set of new lows amid the unveiling of MBS-focused QE3, something the Fed hopes will result in more cash in consumers' pockets and higher spending to help boost the still-sluggish economy. Whether that happens, and if interest rates keep the housing market on an upward trend, obviously remains to be seen. But homeowners are at least moving to lock in those rates in greater numbers.