Mortgage Demand Jumps 20% in One Week
A sharp drop in mortgage rates has boosted loan demand. More homeowners and buyers are returning to the market after a slow start to the year.
According to the Mortgage Bankers Association (MBA), total mortgage applications increased 20.4% last week. This was the first rise in three weeks and a significant weekly surge.
Why Did Mortgage Rates Drop?
The average interest rate for a 30-year fixed mortgage with a conforming loan balance of $806,500 or less dropped from 6.88% to 6.73%. That is the lowest rate since December 2024.
Several factors contributed to this drop:
Economic uncertainty led to declining consumer confidence.
New tariffs on imported goods increased concerns about inflation.
Stock and bond market volatility affected interest rates.
Refinance Applications Surge 37%
Refinancing applications jumped 37% in one week, showing strong demand. Compared to the same week last year, refinance applications are up 83%.
Most homeowners still hold loans with rates lower than today’s offers. However, buyers from the last two years can now benefit from refinancing. Best Option Mortgage helps homeowners take advantage of these lower rates with expert refinancing solutions.
Purchase Applications Also Rise
Applications for mortgages to purchase homes increased 9% last week. However, they are just 2% higher than the same period last year.
Spring is typically a busy season for homebuyers. The recent rate drop could drive more demand. However, affordability remains a challenge due to:
High home prices
Limited inventory
Economic uncertainty
Despite these challenges, Best Option Mortgage helps buyers find the best financing options. Our experts navigate the changing market to secure the best possible rates.
Impact of New Tariffs on Home Prices
New tariffs on China, Canada, and Mexico are expected to increase home prices. This is especially true for new construction, which relies on imported materials.
Buyers should be aware that costs may continue to rise. Acting now while rates are lower could be a smart financial move.
What’s Next for Mortgage Rates?
At the start of this week, rates continued moving slightly lower. However, the market remains volatile.
On Tuesday, when the new tariffs took effect, stock and bond markets fluctuated. Mortgage rates followed bond yields, first dropping, then rebounding slightly. Best Option Mortgage stays ahead of these changes, ensuring borrowers get expert guidance.
Should You Refinance or Buy Now?
With rates at their lowest since December 2024, now is a great time to explore options.
✔ If you bought a home in the last two years, refinancing could save you money. ✔ If you’re looking to buy, acting before rates rise again might be beneficial.
At Best Option Mortgage, we provide expert insights to help you make the right choice. Whether you’re buying or refinancing, we make the process simple and stress-free.
Get Expert Mortgage Advice Today
The market is shifting, and timing is crucial. Contact Best Option Mortgage today to discuss your options. We’ll help you find the best rates and secure your financial future.
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Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2025 ML Mortgage Corp. All rights reserved.