The average contract rate on a 30-year fixed-rate mortgage fell to 6.23%, the week ending in Jan. 13.
According to Reuters, mortgage rates soared to more than 7% last October as the U.S. central bank raised its benchmark policy rate in 2022 at the fastest pace in 40 years. The interest-rate sensitive housing sector has borne the brunt of the Fed’s actions, with mortgage rates still almost double where they were one year ago.
The respite on mortgage rates attracted more buyers. The MBA’s Market Composite Index, a measure of mortgage loan application volume, rose 27.9% from a week earlier, the biggest jump since March 2020.