Home Loan Applications Jump by 28% as Interest Rates Dip
Homebuyers returned from the holiday season to mortgage rates at their lowest since September, and the response is dramatic. Mortgage applications were up nearly 28% last week compared with the previous week, according to the Mortgage Bankers Association (MBA).
In October, we saw an average interest rate of 7.2%, but by December, it had dropped to 6.58%. Refinance demand also jumped by 34% from the previous week.
"As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers," commented Mike Fratantoni, senior vice president and chief economist for MBA.