Mortgage demand continues to climb as rates drop, marking the third consecutive week of growth thanks to a rise in both purchase and refi markets, according to the latest data from the Mortgage Bankers Association.
- Total mortgage demand increased by 1.4% for the week ending September 6, driven by a notable drop in mortgage rates.
Purchase demand surged by 1.8%, reaching the highest level since mid-July. Refinance demand rose 0.8%, with the refi index staying above 750 for the fifth consecutive week—the first time since August 2022.
Rate Drop: A significant decrease in mortgage rates fueled the jump in both purchase and refinance activity. The average contract interest rate for a 30-year fixed-rate mortgage fell to 6.29%, a sharp 14 basis points lower than the previous week and the lowest rate since February 2023.
Why it matters: Lower rates are providing a much-needed boost to both homebuyers and homeowners looking to refinance, offering relief in a market that has been squeezed by high borrowing costs in recent months.
