Mortgage rates last week dropped to the lowest level since October of last year. That caused a massive run on refinances, as consumers seek more savings in an uncertain economy.

Applications to refinance a home loan jumped 58% last week compared with the previous week and were 70% higher than the same week one year ago, according to the Mortgage Bankers Association's seasonally adjusted index. The refinance share of mortgage activity increased to 59.8% of total applications from 48.8% the previous week.

This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.39% from 6.49%, with points falling to 0.54 from 0.56, including the origination fee, for loans with a 20% down payment.

"Homeowners with larger loa

See Full Page