The evidence presented shows that lower mortgage rates have positively affected housing demand, changing the trajectory of purchase applications from a negative to a predominantly positive trend.
New home sales have experienced a greater benefit from lower mortgage rates compared to existing home sales, with this upward trend observable for over two months.
Purchase applications, while seasonal, indicate that the housing market responds to mortgage rates with a considerable shift in demand when rates decline.
From the start of the year, the data showed that rising mortgage rates led to a steep decline in demand, but falling rates have resulted in an increase in positive weekly applications.
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