Mortgage Rates Fluctuate: What Homebuyers Need to Know

Lower mortgage rates have led to a 2.9% increase in demand for mortgage applications, with the refinance index increasing by 5%. The purchase index also increased by 2%, leading to a fourth straight increase in purchase applications. Homebuyers have responded positively to the decline in rates, despite the 30-year fixed rate remaining 1.65 percentage points higher than a year ago. The slowing of home price growth in many parts of the country has helped to improve buyers' purchasing power.