Mortgage Rates Plummet, Fueling Surge in Demand and Refinancing

Mortgage demand continues to rise as mortgage rates drop to their lowest level since August. The Mortgage Bankers Association's index of mortgage applications increased by 2.8% last week, with the average rate on a 30-year loan falling to 7.17%. The decline in rates has spurred more housing demand, with applications for home purchases rising by 35% and refinancing applications surging by 14%. However, application volume remains down 17% compared to the same time last year due to low inventory and affordability issues in the housing market.