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

Mortgage rates dipped last week, leading to a significant increase in mortgage demand. Refinancing applications rose by 12% compared to the previous week and were 5% higher than a year ago. Applications for home purchases also saw a 5% increase, although they remained 11% lower than the previous year. Despite the recent uptick in demand, the level of refinancing activity remains low, mostly driven by borrowers who took out loans at higher rates in the past two years. Homebuyers continue to face challenges such as high interest rates, soaring home prices, and limited inventory.