Mortgage Demand Jumps as Refi Demand Hits a Two-Year High
Key Takeaways:
- Total Mortgage Demand: Increased by 16% from the prior week, reaching the highest level since February.
- Refinance Activity: Skyrocketed by nearly 30%, with the refinance index up 28%, marking the highest level since September 2022.
- Mortgage Rates: Fell to 7.02%, reversing a two-week climb and just one basis point above the lowest level in the last three months.
Mortgage demand has seen a significant resurgence, climbing 16% from the previous week, reaching its highest level since February. This uptick is primarily driven by a substantial increase in refinancing activity, which skyrocketed nearly 30%.
The refinance index experienced a notable 28% rise from the prior week, marking its highest point since September 2022. This surge in refinancing indicates that many homeowners are taking advantage of the slight dip in mortgage rates, which recently reversed a two-week upward trend.
Purchase demand, while not as dramatic as refinancing, also showed a healthy increase. It rose by 8.6% from the previous week, reaching its highest level since early May. This steady growth in purchase applications reflects a resilient housing market despite the fluctuating rates.
The recent adjustment in mortgage rates saw them fall to 7.02%, just one basis point above the lowest level in the past three months. This slight decrease has likely contributed to the renewed interest in both refinancing and purchasing homes.
Overall, the mortgage market is showing signs of robust activity, with total mortgage demand experiencing its most significant surge in months. The combination of slightly lower rates and increased consumer confidence appears to be fueling this growth, setting a positive tone for the housing market as we move into the summer months.
