According to the Mortgage Bankers Association, in a weekly comparison, mortgage applications rose 18% last week.  Refinances are making up nearly 75% of the mortgage activity, jumping to the highest level seen in over a year. 

Economists believe that it is the low mortgage rates that are enticing refinancers.  The FED program that was pumping $1.25 billion into mortgage backed securities expired in March of this year, giving analysts reason to believe that the rates would rise rapidly.  However, the European Debt crisis forced investors to shift their investments into "safer" US Treasury Bonds.  As mortgage rates are closely tied to long-term treasury bonds, the result of the shift of funds has kept the mortgage rates at or around 5%.