Mortgage Demand Spikes As Rates Hit 2-Year Low

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. Rates were down from the week before for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a two-year low. “Application activity was up significantly last week, as market expectations of a rate cut from the Fed pulled mortgage rates lower,” Kan said. “The 30-year fixed mortgage rate … is now at its lowest since September 2022 and is more than a full percentage point lower than a year ago.” As a result, demand for loan applications skyrocketed, with refinance activity up 24 percent and purchase demand 5 percent higher than one week earlier. The MBA’s weekly survey has now been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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