Mortgage demand rose for the fifth consecutive week as falling interest rates fueled a surge in refinancing activity, according to the latest data from the Mortgage Bankers Association.
- Total mortgage demand jumped 11% from the prior week, reaching its highest level since July 2022.
Refi Boom: Refinance demand surged 20% from the prior week and is now up 49% over the last two weeks, the highest since April 2022 as rates continue to fall.
- Purchase demand saw a smaller but steady rise, increasing by 1.4%, marking its fifth straight week of gains and reaching its highest level since February.
Rates: The average interest rate for a 30-year fixed-rate mortgage fell to 6.13%, its lowest since September 2022, propelling the rise in both refis and purchases.
Bottom Line: With rates continuing to drop, the mortgage market could see further growth, particularly in refinancing, as borrowers seize the opportunity to lock in lower costs.
