Mortgage rates are at the lowest level since September, and that is bringing new demand into the mortgage market. DianaOlick reports.
The average contract interest rate for 30-year fixed-rate mortgages decreased last week to 6.23% from 6.42%.
Mortgage application volume jumped nearly 28% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Rates hit a recent high of around 7.2% at the end of October on the MBA's survey but ended the year at 6.58%. One year ago, the average rate on the 30-year fixed was 3.64%.
Applications for a mortgage to purchase a home rose 25% week to week but were 35% lower than the same week one year ago.
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