U.S. Housing Market Gains Momentum as Loan Applications Jump
The housing market is gaining steam as rates drop and mortgage applications surge.
Housing market activity has picked up over the last week, evidenced by a jump in home loan applications following a drop in mortgage rates.
Mortgage applications jumped 6.5% over the week ending on March 10, the Mortgage Bankers Association said on Wednesday. That comes amid the first drop in mortgage rates in five weeks, with the rate on the 30-year fixed mortgage falling to an average of 6.71%.
The pop in housing activity has been spurred by falling Treasury yields, with markets lowering their expectations for interest rates after the collapse of Silicon Valley Bank over the last week. The tech-focused bank was seized by the FDIC after posting a $1.8 billion loss on its bond portfolio, sparking chaos in bank stocks and raising pressure on the Federal Reserve to soften its interest rate hikes to avoid putting more stress on the banking system.