Weekly mortgage demand surges 14% higher as interest rates hit two-year low

Mortgage applications jump as interest rates fall

Mortgage demand surged 14% last week as interest rates hit a two-year low, according to the Mortgage Bankers Association (MBA). This is the largest weekly increase in mortgage demand since April 2020.

Refinancing activity spikes

The increase in mortgage demand was driven by a surge in refinancing activity. Applications for refinancing loans jumped 22% last week, the largest weekly increase since March 2020. This is likely due to the fact that interest rates have fallen to their lowest levels in two years, making it more affordable for homeowners to refinance their mortgages.

Purchase applications also increase

Applications for purchase loans also increased last week, rising 7%. This is the fourth consecutive week that purchase applications have increased. This increase is likely due to the fact that the economy is improving and more people are looking to buy homes.

Rates hit two-year low

The average contract interest rate for a 30-year fixed-rate mortgage fell to 3.14% last week, the lowest level since May 2020. This is down from 3.29% the previous week. The average contract interest rate for a 15-year fixed-rate mortgage fell to 2.53%, the lowest level since May 2020. This is down from 2.65% the previous week.

Conclusion

The surge in mortgage demand is good news for the housing market. It indicates that both homeowners and potential homebuyers are taking advantage of the low interest rates to refinance their mortgages or purchase homes.