Mortgage demand climbed for the fourth consecutive week as interest rates eased from three-month highs, according to the Mortgage Bankers Association (MBA).
- Demand rose 2.8% from the previous week, a smaller gain compared to the prior week’s 6.8% jump but enough to push mortgage applications to their highest level since late October.
Purchases: Driving this rally is increased purchase activity, which jumped 5.6% week-over-week, reaching its highest point since mid-January.
- Refinancing demand, on the other hand, dipped by 0.6%, hitting its lowest level since May as high rates continue to discourage homeowners from refinancing.
Falling Rates: The average rate for a 30-year fixed mortgage fell to 6.69%, down 17 basis points from the prior week and the lowest level since mid-October.
What They’re Saying: Joel Kan, MBA’s Vice President and Deputy Chief Economist, noted that improving market conditions are attracting buyers, “The recent strength in purchase activity continues, supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year.”
Bottom Line: With rates softening and inventory improving, buyers are taking advantage of better deals before the spring market heats up. While refinancing remains sluggish, the rise in purchase activity underscores renewed confidence in the housing market.
