According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell week-over-week to the lowest level since last October. Rates were down last week across all loan categories, including 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. Favorable rates helped spur a 20 percent surge in mortgage applications. Joel Kan, MBA’s vice president and chief economist, says borrowers took advantage of the dip. “Both home buyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24 percent higher than a year ago to the strongest pace since January 2024,” Kan said. Refinance activity rose 35 percent from the week before, while purchase application demand was up 9 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
