Key Takeaways
\nHome buyers and refinancers applied for mortgages at the highest level since 2022 as mortgage rates fell to their lowest since last October.Mortgage volume was higher last week than the same time last year as borrowers rushed to take advantage of falling rates.Significant increases were seen in applications for both purchases and refinancing, especially for borrowers with larger loans.<\/p>\n
Mortgage rates hit their lowest levels since last October and people took notice\u2014applications for home loans surged last week.\n<\/p>\n
According to Mortgage Bankers Association data, the 30-year fixed mortgage rate declined for a second week, falling to 6.49% in the week ending Sept. 5.\u00a0 The decline sent signals to borrowers, who applied for 9% more mortgages than the previous week.\n<\/p>\n
\u201cThe downward rate movement spurred the strongest week of borrower demand since 2022, with both purchase and refinance applications moving higher,\u201d said Joel Kan, MBA deputy chief economist.\n<\/p>\n
Data Shows Signs of Life in Housing Market <\/p>\n
The housing market may be beginning to thaw after elevated mortgage rates<\/a> and high-priced housing have helped to freeze sales<\/a>. Mortgage application volumes have been at historically low levels as interest rates have hovered above 6.5% for most of the year.\u00a0\n<\/p>\n The recent\u00a0decline in rates has motivated some borrowers<\/a>, as\u00a0buyers and homeowners chase cheaper borrowing costs.\n<\/p>\n