Fed's Potential Rate Hike Pause Sparks Surge in Mortgage Demand and Applications

Mortgage rates fell slightly last week after the chairman of the Federal Reserve suggested a potential end to a historic string of interest rate hikes. As a result, applications to refinance a home loan jumped 10% last week, compared with the previous week, seasonally adjusted. Applications for a mortgage to purchase a home increased 5% for the week, but were 32% lower than the same week a year ago. However, mortgage rates rose sharply to start this week, according to a separate survey from Mortgage News Daily.