A recent drop in interest rates had produced a sudden jump in the number of homeowners looking to refinance their homes.

The Mortgage Bankers Association reports this week that the volume of mortgage loan applications jumped 51.4 percent over the previous week, even though the business week was shortened by Thanksgiving.

The organization also noted that refinancing activity had gone up to 69.1 percent of total applications, from 49.3 percent a week before.

The New York Times reported Wednesday that the Treasury is discussing ways with Fannie Mae and Freddie Mac to bring mortgage rates down about a point to around 4.5 percent.

The Times observes that this recent activity could be a sign that lower rates could fuel even more activity, but also pointed out that only homeowners with higher credit scores will be able take advantage of them.

“For borrowers on the fringe… mortgage money may actually be available but the other terms and conditions that need to be jumped to have access to that financing make it prohibitive,” Keith Gumbinger, of HSH Associates told the Times.

For those consumers who lack access to traditional credit sources, other options for meeting short-term cash needs can include payday loans.

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