Mortgage rates dropped to the lowest level since March last week, sparking swift demand in refinancing. Homebuyers, however, seemed unimpressed. Applications to refinance a home loan jumped 15% last week, compared with the previous week, to the highest level since August 2022, according to the Mortgage Bankers Association’s seasonally adjusted index. Demand was 37% higher than the same week one year ago when mortgage rates were exactly the same. While the increase last week was large, it is coming off a very small base. Refinance demand is still more than 70% lower than it was in early 2020, before the Covid-19 pandemic hit. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.87% from 7.00%, with points dropping to 0.57 from 0.60 (including the origination fee) for loans with a 20% down payment. “Mortgage rates declined last week, as recent signs…
