The MBA Refinance Index finally showed some action last week, reflecting a 42% jump in applications (borrowers reacted to a 6.55% mortgage rate from the week previous) - a move that was expected by most mortgage players. However, despite the significant rise in refis, it is still not as steep as that which was seen late last year when mortgage rates were at similar levels. The Index's rather moderate response to the level of rates has been an ongoing trend that many analysts have speculated on.

There are several reasons being given as to why borrowers' response to the current low rates is rather tepid.

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