Mortgage Applications Highest Since July 2022
Mortgage applications have hit their highest level in over two years, experiencing an 11% surge during the week ending September 20th, according to the latest data from the Mortgage Bankers Association (MBA).
This spike in applications pushed the MBA’s overall index to its highest point since July 2022, largely driven by a significant 20% increase in refinance applications compared to the previous week. In fact, refinance applications are now a staggering 175% higher than the same period last year. Meanwhile, purchase loan applications saw more modest gains, rising 0.4% week-over-week and 2% year-over-year.
The recent decline in mortgage rates is clearly motivating homebuyers and homeowners alike. The 30-year fixed rate dropped for the eighth consecutive week, settling at 6.13%, while the rate for Federal Housing Administration (FHA) loans dipped below the critical 6% threshold to 5.99%, as highlighted by Joel Kan, MBA’s Vice President and Deputy Chief Economist.
“With lower rates, we’ve seen substantial week-over-week growth in both conventional and government refinance applications,” Kan noted. “Refinance activity now makes up 55.7% of total applications. While this is still modest compared to past refinance booms, it shows that homeowners are eager to take advantage of the current rate environment, especially given the seasonal slowdown in home purchase activity.”
For those considering a home purchase or refinance, now might be an ideal time to explore your options, as lower rates continue to attract increased borrower demand. If you’re looking for guidance on navigating the current market, feel free to reach out—I’m here to help you find the best path forward in today’s evolving real estate landscape.
