Mortgage applications in the United States increased by 2.8% on a seasonally adjusted basis in the week ending December 1, the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey showed on Wednesday.
According to the report, the average 30-year mortgage rate dropped to 7.17%, the lowest level since August 2023. The Refinance Index increased to 14% compared to the previous week, while the seasonally adjusted Purchase Index decreased 0.3% on a weekly basis.
"Slower inflation and financial markets anticipating the potential end of the Fed's hiking cycle are both behind the recent decline in rates," MBA Deputy Chief Economist Joel Kan said. "The overall level of refinance applications is still very low, but recent increases could signal that 2023 was the low point in this cycle for refinance activity, consistent with our originations forecast. Purchase applications remained 17% lower than a year ago, held back by low inventory and still-challenging affordability conditions."
