Total mortgage demand jumped 20% in the final week of February, marking the biggest increase since January and the highest level since early October, according to the Mortgage Bankers Association.
Why it matters: The surge was almost entirely driven by a spike in refinancing activity, as mortgage rates continued to decline for the fifth straight week.
By the numbers
- The refinance index skyrocketed 37%, reaching its highest level since October.
- Purchase applications were largely unchanged, rising just 0.1% from the previous week.
- The average contract rate for a 30-year fixed mortgage fell to 6.73%, down 15 basis points, hitting its lowest point since early December.
What’s Happening: With rates trending lower, homeowners looking to refinance their existing mortgages are driving demand, while homebuyers remain cautious as affordability challenges persist.
Bottom Line: With the latest jump entirely because of refi demand and uptick, which looks to be happening, will likely cause a sharp drop in mortgage demand.
