Mortgage applications skyrocket - if you are considering refinancing or buying, get off the fence NOW!

Last week mortgage applications spiked to their highest level in more than 5 years, as rates plunged to record lows. The number of applications increased 48% last week to the highest they have been since July 2003.

Over 80% of applications received were for those looking to refinance, although home buyers and investors should certainly be taking advantage of these much-welcomed rates as well.

Freddie Mac reported Wednesday that average rates on a 30-year fixed-rate mortgages dropped to 5.14 this week, down from a record 5.19 set last week. Last week there was a drop in the rate to 4.5, but was just for a very short hour.

Many lenders do not believe that rates will ever stabilize at such a low rate.

Many borrowers are doing "rapid refis" which means the loan is rolled over to one at a lower rate, even if there is low or negative equity in the home. Anyone who currently has an FHA or VA loan can do a rapid refi, said Jill Hoogendyk, president-elect of Arizona Mortgage Lenders Assocation.