Overall, mortgage application activity increased 9.3% in the week ending Sept. 23 with the Refinance Index, specifically surging 11.2% to ~4240.

"Mortgage rates declined last week, at least partially in response to the Fed's announcement that they would shift their portfolio towards longer-term Treasury securities, and that they would resume buying mortgage-backed securities," said Michael Fratantoni, Mortgage Bankers Association (MBA) vice president of research and economics. "With lower rates, refinance application volume increased to its highest level since August 19, 2011. Purchase application volume also increased."

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