Mortgage rates hit new lows, sparking surge in housing demand

Mortgage rates have dropped to a two-month low, sparking renewed interest in the housing market. The Mortgage Bankers Association's index of mortgage applications rose 3% last week, with the average rate on a 30-year loan falling to 7.41%. The decline in rates has led to increased demand for both home purchases and refinancing. However, despite the recent uptick, application volume remains down compared to the same time last year. The housing market has been impacted by high mortgage rates, limiting inventory and leaving few options for buyers.