Fed's Comments on Rate Hikes Drive Surge in Mortgage Demand

Mortgage applications for both home purchases and refinancing increased last week, with the Refinance Index rising by 10 percent and the Purchase Index up by 5 percent. The Federal Reserve's comments on a potential pause in interest rate hikes contributed to the increase in volume. However, limited inventory remains a challenge for homebuyers, and only a small pool of borrowers can benefit from refinancing at current rates. The average contract rate for a 30-year fixed-rate mortgage decreased slightly to 6.48 percent.