After Short Lull, Lenders Say Homeowners Again Rush to Refinance Mortgages Across the Nation

The recent drop in long-term interest rates has given a new lease on life to the mortgage refinancing boom.

“Refinance mania is in full gear,” said Steve Norman of Cal Coast Mortgage Corp. in San Diego. “It had started to subside, but new applications are picking up.”

“There definitely has been a resurgence in refinances,” said Richard Malloy, chief administration officer at Norwest Corp.’s mortgage unit.

An index of weekly refinancing applications rose about 10% from late May through mid-June, the latest reading.

The index, maintained by the Mortgage Bankers Assn. of America, stood at 819.3, having passed the 800 mark for the fourth time since early 1992.

The index, however, was still well below the 1993 peak of 1,465.6 reached in mid-March. A reading of 100 correlates with application levels of March 1990.

The recent bounce in loan demand is eliciting outright glee.

“We really love it when it’s like this,” said Norman of Cal Coast.

As with other lenders, the company’s refinancing is up after a lull in early June, he said. Calls to its offices from consumers seeking refinancing are running 20% higher than in late May, he said.

Norman said his business is still booming, with total originations up 42% from this time last year.

Others report similar results.

Bank of Mississippi in Tupelo “saw a lull” around June 1, said William G. Hardin, first vice president of the mortgage loan department. But since then, refinancing has “definitely picked up,” he said.