[Trending News] Mortgage applications climb as 30-year fixed rate falls below 7%

“Mortgage rates moved lower last week, consistent with lower Treasury yields following the FOMC meeting and a volatile week for the stock market. The 30-year fixed rate declined to its lowest level in six weeks at 6.97%,” MBA deputy chief economist Joel Kan said in the report. “Mortgage applications responded to these lower rates and were up for the week overall.”

With mortgage rates falling, homeowners took advantage of refinancing opportunities. The Refinance Index jumped 12% from the previous week, its strongest week since December 2024. Compared to the same period last year, refinance applications were 17% higher.

Refinance activity now accounts for 39.0% of total mortgage applications, up from 37.1% the previous week.

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While refinances surged, purchase applications saw a setback, declining 4% on a seasonally adjusted basis. The unadjusted Purchase Index, however, rose 15% compared to the previous week and was 0.2% higher than the same period last year.