Mortgage applications rose sharply last week to a two-year high, driven by a substantial increase in refinance activity as more homeowners sought to take advantage of declining mortgage rates.
The Mortgage Bankers Association’s (MBA) weekly applications survey, released on Sept. 25, showed an 11 percent overall increase in mortgage applications for the week of Sept. 20 from the previous week, buoyed by a notable 20 percent jump in refinance applications.
The increase sent mortgage applications to their highest level since July 2022. Joel Kan, MBA’s vice president and deputy chief economist, attributes the spike to declining mortgage rates.
“The 30-year fixed rate decreased for the eighth straight week, to 6.13 percent, while the FHA [Federal Housing Administration] rate decreased to 5.99 percent, breaking the psychologically important 6 percent level,” Kan said in a statement. “As a result of lower rates, week-over-week gains for both conventional and government refinance applications increased sharply.”…