WASHINGTON–A dip in mortgage rates to their lowest point in nearly a year is being credited for a surge in mortgage applications.
Total mortgage app volume was up 9.9% last week over the prior week, driven in large part by a decrease in the average rate on the 30-year fixed-rate mortgage to 4.03%, according to the Mortgage Bankers Association.
"Overall, mortgage rates continued to decline last week with the 30-year fixed rate decreasing three basis points to its lowest level since the 2016 election, said Joel Kan, an economist with the MBA. “Rates have decreased almost 20 basis points since mid-July.”
According to the MBA, after several weeks of steady declines, mortgage apps to purchase a home jumped 11% for the week and were 7% higher than at the same time in 2016.