Mortgage demand surged to an index of 266.8 for the week ending September 13th, up 14% from the previous week, marking the highest level since August 2022.
- Refinancing demand skyrocketed by 24%, reaching its highest level since April 2022.
- Purchase demand also rose, up 5.4%, pushing the index to its highest point since June.
What’s happening: The jump in mortgage activity comes as interest rates continue to fall. The average contract interest rate for a 30-year fixed-rate mortgage dropped to 6.15%, down 14 basis points from the previous week. This is the lowest rate since early September 2022.
Why it matters: Falling mortgage rates are boosting demand as buyers and homeowners seize the opportunity to lock in more favorable terms. Lower rates can increase affordability for homebuyers and provide refinancing opportunities for those looking to reduce monthly payments.
The big picture: After months of high rates dampening housing demand, the recent drop in rates could signal a turning point for the market. However, whether this uptick in demand will persist depends on how long rates remain low and how broader economic conditions evolve.
