Mortgage Refinancings Surge to 6-Month High Amid Rate Drop and Bank Volatility

US residential mortgage refinancing activity rose to a six-month high last week, driven by a third straight weekly drop in borrowing costs. The Mortgage Bankers Association's weekly index of overall home loan application volumes climbed 2.9% to notch a fourth week of gains, the longest up-streak in four years. The increase was led by a 4.8% rise in applications to refinance an existing loan, which brought that activity to its highest level since last September and furthered the distance from a two-decade low hit at the end of last year.