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The Mortgage Bankers Association (MBA) announced this morning that the number of Americans applying for a mortgage to purchase a home or refinance their current mortgage increased in the past week.

For the week ending March 9, the MBA’s survey showed that the weekly Market Composite Index, which measures mortgage loan application volume, increased by 2.8 percent overall from the previous week. Refinance applications increased by 3.5 percent, while purchase applications went up by 2.2 percent.

Bob Walters, chief economist of Quicken Loans, says that low long-term interest rates are fueling the most recent rise in mortgage activity.

“Last week’s mortgage activity was bolstered by low long-term rates that have drawn more homebuyers into the market. An improving jobs picture has also bolstered consumer confidence in taking advantage of the opportunity they currently have in real estate,” said Walters. “Also, with more than $1.1 trillion in adjustable rate mortgages expected to adjust in 2007, low long-term rates continue to entice homeowners out of adjustable rate mortgages and into fixed programs to avoid a rate and payment increase when the ARM resets.”

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