Weekly mortgage demand jumps again as interest rates fall just below 7%

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Mortgage demand surged higher for the second straight week, after the average rate on the 30-year fixed dropped below 7%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.84% from 7.02%

A For Sale sign is posted in front of a home for sale in San Marino, California on September 6, 2023.Mortgage rates swung slightly lower last week, fueling a significant jump in mortgage demand for the second straight week. Total application volume rose 7.1%, compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.

As a result, applications to refinance a home loan, which are most sensitive to weekly rate moves, rose 12% for the week and were 5% higher than the same week one year ago.

 

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