Mortgage demand jumped as Treasury yields tumbled, and average rate on the most popular US home loan moved from 7.86% to 7.61%, the MBA said.
The rate on the most popular US home loan saw the biggest weekly decline in over a year last week, while mortgage demand spiked, according to the the latest data from the Mortgage Bankers Association.
The MBA said Wednesday the average interest rate on a 30-year fixed mortgage with loan balances of $726,000 or less moved from 7.86% to 7.61% last week. At the same time, total mortgage application volume climbed 2.5% compared to the prior week.
The dip in mortgage rates coincided with sinking bond yields, as investors piled back into US Treasurys after weeks of volatility that saw the benchmark 10-year bond yield jump past 5% for the first time since 2007.
