Mortgage Applications Responded to Lower Rates, But Things Are Already Changing

Mortgage applications jumped sharply last week, driven by lower rates and a rebound in refinance activity. According to MBA’s Weekly Applications Survey for the week ending October 24, total volume rose 7.1% on a seasonally adjusted basis and 7% unadjusted. The Refinance Index increased 9% from the previous week and is now 111% higher than the same week one year ago. Refi demand remains the primary engine of growth, with larger-balance borrowers especially responsive to rate drops. It bears repeating that things look different in context.  Specifically, while refi demand looks great compared to the past 2 years, we're just now getting up to levels that were considered "very slow" historically. “ Mortgage rates decreased for the fourth consecutive week, with the 30-year