Mortgage Rates Fluctuate Amidst Bank Turmoil and Increased Demand.

The average rate on 30-year fixed-rate mortgages in the US fell by 0.23 percentage points to 6.48% last week, the largest weekly drop in four months, after the failure of Silicon Valley Bank and emergency measures taken to shore up the wider banking system drove investors to the safety of government bonds. The drop in yields on Treasury notes pushed down mortgage rates, leading to a jump in loan application volumes for both new purchases and refinancing of existing loans. However, the drop in residential borrowing costs was more modest than expected due to increased volatility in the market for mortgage-backed securities.