Business is booming.

Average 30-year mortgage rate ticks down, home purchase demand rises

Purchase home loan applications increased 3% on a seasonally adjusted basis last week, and refinance applications surged 15%, the Mortgage Bankers Association’s latest weekly survey showed.

“Mortgage rates declined for the third straight week, which is good news for potential homebuyers looking ahead to the spring homebuying season,” said Joel Kan, MBA’s deputy chief economist. “Mortgage rates on most loan types decreased last week, and the 30-year fixed rate reached its lowest level since September 2022 at 6.2%.

“Overall applications increased with both gains in purchase and refinance activity, but purchase applications remained almost 39% lower than a year ago. Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market. Many have been waiting for affordability challenges to subside.”

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