Mortgage Refinance Demand Rebounds as Rates Decline

Mortgage interest rates decreased last week, leading to a rise in refinance demand but offering little relief to potential homebuyers. Total mortgage application volume increased by 1.1%, with applications to refinance a home loan jumping 7% but still remaining 32% lower compared to the previous year. Applications for a mortgage to purchase a home fell by 1% and were 21% lower than the same week in 2022. The housing market is experiencing a decline in supply and rising home prices, which is further impacting homebuying activity. Mortgage rates have remained relatively stable, hovering in the high 6% range on the 30-year fixed.