Homebuyer demand for mortgages jumps 12%, after first interest rate drop in over 2 months

Mortgage rates decreased last week, leading to a 6.3% increase in total mortgage demand, with the average interest rate for 30-year fixed-rate mortgages dropping to 6.86%. Homebuyers, previously on the fence due to factors like the election and supply, surged into the market, driving a 12% rise in purchase loan applications. While refinance applications dropped 3% from the previous week, they were still significantly higher than a year ago, despite comparisons to a different holiday week in 2023.

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