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With interest rates falling in the last week, consumers took advantage according to the latest Weekly Mortgage Applications survey from The Mortgage Bankers Association (MBA).

For the week ending March 2, the MBA’s survey showed that the weekly Market Composite Index, which measures mortgage loan application volume, increased 7.3 percent overall from the previous week. Refinance applications were up 15 percent, while purchase applications also rose a modest 1percent.

Bob Walters, chief economist of Quicken Loans, the nation’s largest online lender, says if the market can sustain the current low rates, there is potential to see continued growth in mortgage applications.

“Last week’s troubled stock market forced many investors to retreat to Treasury bonds, driving the rate on a 30-year fixed-rate mortgage below six percent,” Walters said. “This opened the door for many consumers to take advantage of extremely affordable rates. With more than $1.1 trillion in ARMs set to adjust higher in 2007, there is the potential to see continued strengthening in applications in the coming weeks.”

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