Mortgage applications surged in the first week of September as interest rates dropped to their lowest level since October 2024. Total application volume rose 9.2% from the prior week, according to the Mortgage Bankers Association. The average 30-year fixed mortgage rate fell significantly, spurring the strongest borrower demand since 2022.
Refinance activity jumped 12% week-over-week and was 34% higher than a year ago, now making up nearly half of all applications. Purchase applications increased 7% from the prior week and 23% from last year, reaching their highest level since July. Larger refinance loan sizes suggest homeowners are taking advantage of savings opportunities.
Adjustable-rate mortgages also saw higher demand as they offered lower rates than fixed loans. While rates ticked up slightly at the start of last week, upcoming economic news is expected to influence where mortgage rates head next, especially the Fed meeting on Wednesday.
Source : https://bit.ly/4nx8jle
By: Jon Iacono