Applications to refinance home-mortgages jumped by a record amount, as borrowers flocked to take advantage of falling mortgage rates -- which were driven down by the government's announcement that it would step in to stabilize the mortgage market.

On Wednesday, the Mortgage Bankers Association reported that its index of refinance applications had tripled, the largest increase since the group began tracking this data in 1990.

Applications to purchase homes, which tend to be less sensitive to interest-rate movements, also increased, though by a smaller amount.  The surge in application volume comes as mortgage rates fell by more than 0.50 percentage in the past week.

 

Source: WSJ Online