Mortgage rates fall to new record low, spurring applications - WKOW 27: Madison, WI Breaking News, Weather and Sports

Mortgage rates fall to new record low, spurring applications

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WASHINGTON (AP) -- Low mortgage rates are spawning a boom in refinancing.

  The average for 30-year fixed-rate mortgages has dropped to a record low for a second straight week, at 5.14 percent.

  Lured by such attractive rates, the Mortgage Bankers Association says applications rose 48 percent last week to the highest level since July 2003.

  Most of those applications for mortgages came from borrowers looking to refinance into loans with the lower rates, rather than those buying a home.

  Even with the low rates, home sales this year are expected to hit the lowest levels in at least a decade.

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