Mortgage applications jump nearly 10% as rates drop

"Mortgage rates declined for the second consecutive week as Treasury yields moved lower on data indicating that the labor market is weakening. The 30-year fixed rate decreased to 6.49%, down 20 basis points over the past two weeks to the lowest since October 2024, said Joel Kan, MBA's vice president and deputy chief economist. The downward rate movement spurred the strongest week of borrower demand since 2022, with both purchase and refinance applications moving higher."

"The refinance index increased 12% from the previous week and was 34% higher than the same week one year ago. Meanwhile, the share of refinance activity increased to 48.8% of all applications up from 46.9% the previous week. The seasonally adjusted purchase index increased 7% from one week earlier. The unadjusted purchase index decreased 6% compared with the previous week and was 23% higher than the same week one year ago."

Mortgage rates declined for the second consecutive week as Treasury yields moved lower on data indicating a weakening labor market. The 30-year fixed rate dropped to 6.49%, the lowest since October 2024, with conforming 30-year fixed rates down 15 basis points and jumbo rates down 14 basis points. The refinance index rose 12% week-over-week and 34% year-over-year, and refinance share increased to 48.8%. The seasonally adjusted purchase index rose 7% while the unadjusted purchase index was 23% higher than a year ago. ARM activity and VA and USDA shares increased, while FHA share fell.

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