Mortgage Demand Soars as Rates Hit New Lows

Mortgage demand has surged to a five-week high as consumer demand rebounds following a drop in mortgage rates. The Mortgage Bankers Association's index of mortgage applications rose 2.8% last week, with applications for home purchases increasing by 3%. Refinance applications also saw a 2% increase. However, application volume remains down 12% compared to the same time last year. The housing market has cooled due to the Federal Reserve's tightening campaign, and high mortgage rates are limiting inventory, with available home supply down 45.1% from pre-pandemic levels.