"Surging Mortgage Demand Driven by Dropping Interest Rates"

Mortgage demand surged as interest rates dropped below 7% for the first time in over a month, with the Mortgage Bankers Association's index of mortgage applications rising 7.1% and the average rate on a 30-year loan falling to 6.87%. Housing demand, which had slowed due to higher rates, is now picking up, with applications for home purchases and refinancing both increasing. The Federal Reserve's aggressive tightening campaign has cooled the interest rate-sensitive housing market, but economists expect rate cuts to begin in June amid signs of persistently high inflation.