Mortgage refinances surge 79%, most since financial crisis, as people rush to capitalize on low interest rates

• Mortgage refinancing applications spiked 79% from the previous week, according to data released Wednesday from the Mortgage Bankers Association.
• It's the largest weekly increase in refinancing applications since November 2008.
• The MBA now expects refinance originations to double from earlier projections and jump nearly 37% to about $1.23 trillion in 2020.
• Read more on Business Insider.

Homeowners are rushing to refinance their mortgages amid historically low rates.

Mortgage refinancing applications spiked 79% from the previous week, according to data released Wednesday from the Mortgage Bankers Association. The uptick is the largest weekly increase since November 2008, and a 479% jump from the same week one year ago.

"Prospective buyers continue to be encouraged by improving housing inventory levels in some markets and very low rates," Joel Kan, MBA's associate vice president of economic and industry forecasting, said in a statement.

Market uncertainty around the coronavirus outbreak sent investors flocking to US Treasuries, pushing yields to record lows last week. That sent the average 30-year fixed mortgage rate to fall 3.47%, the lowest since December 2012, according to MBA. Other readings, such as Freddie Mac's weekly average of the 30-year rate, fell to a record low at the beginning of March.

Mortgage applications for people looking to buy a house also increased 55.4% from a week earlier, according to the report.

In light of the current interest rate environment, the MBA has significantly increased its forecasts for the rest of the year. It now expects refinance originations to double from its earlier projections and jump nearly 37% to about $1.23 trillion in 2020. The group also expects total mortgage originations to be roughly $26.1 trillion this year, a more than 20% gain from 2019 volumes.

"As lenders handle the wave in applications and manage capacity, mortgage rates will likely stabilize but remain low for now. This in turn will support borrowers looking to refinance or purchase a home this spring," Kan said.