Despite high interest rates, consumers weren’t afraid to refinance home loans last week, according to the Mortgage Bankers Association. Its index of total mortgage applications for purchasing new homes and refinancing already-existing loans rose 1.5% during the week that ended September 16. The previous seven days had actually seen a 1.4% dip in the index.

In related to news, fixed 30-year mortgage rates rose nine base points (i.e. .09%), to an overall average of 5.81%. If you exclude fees, this number compares with 5.72% from the prior week. Always considered to be symbolic of the industry, this specific type of mortgage rate is still below the high in 2005 of 6.08%, which was reached in March. In June, the number was at its year low, 5.47%.

Here is the latest updates on other types of loans from last week:

• Fixed 15-year mortgage rates averaged 5.38% (an increase from 5.29% the week before)
• One-year adjustable-rate mortgages (ARMs) rose to 4.94% (from a previous rate of 4.82%)
• As a percentage across the board of mortgage applications, refinancings also increased to 45.6% (from 42.9%), the MBA said.

Under the terms of ARMs, low initial payments allow borrowers to buy homes they may not be able to afford with another package, such as a fixed-rate loan. Because fixed mortgage interest rates rose in recent weeks, demand for ARMs also climbed. They accounted for 29.8% of total applications, up from 28.2% the previous week.

The second quarter of 2005 - ending on June 30 - refelcted the strongest growth in single-home prices of all time, according to the National Association of Realtors.

In its quarterly survey, NAR found that U.S. home prices rose at an annual rate of 13.6%, to a median price of $208,300. 149 metro areas were surveyed. Of those, 67 showed gains greater than 10%.

Of the 149 metro areas surveyed, 67 showed gains of more than 10 percent. There is an available table tracking home prices online. Four of the the top five results were based in Florida:

1. Phoenix-Mesa-Scottsdale (AZ) - Growth = 47%; Median Price = $243,400
2. Cape Coral-Fort Myers (FL) - Growth = 45.2%; Median Price = $266,800
3. Palm Bay-Melbourne-Titusville (FL) - Growth = 40%; Median Price = $204,000
4. Orlando (FL) - Growth = 36.5%; Median Price = $232,000
5. Sarasota-Bradenton-Venice (FL) - Growth = 34.3%; Median Price = $367,800

“When you look at appreciation of home prices relative to the overall rate of inflation, these are the strongest increases on record,” David Lereah, NAR’s chief economist. said.

While the aforementioned areas were among the sharpest increases in value, seven cities showed steep declines. The most drastic was the Kalamazoo/Portage area of Michigan, where home prices have declined 3.7%, to $122,600. Meanwhile, the lowest priced market was Danville, Illinois, where the average home is just $73,400. Even that result, however, is up 16.9% from the second quarter a year ago.

The West led the nation with an average annual gain of 19.5%, to an average of $312,600. Conversely, southern states depicted the slowest rate of growth, only 5.7%, to $179,400 as the average price per abode.