The spring housing market has just received an influx of buyers, with total mortgage application volume rising by 10 percent on a seasonally adjusted basis last week from the previous week, CNBC reports. Although it my have taken a bit longer than expected, homebuyers couldn’t keep away from near-record low mortgage rates for long.
Mortgage applications increased by nine percent from the previous week and 24 percent compared to one year prior. Since May 2010, purchase application levels have been higher on only one occasion.
Part of the increase is likely due to already low interest rates dropping even further than they already were. The average interest rate for a 30-year fixed-rate mortgage decreased to 3.82 from 3.86 percent. This is as low as rates have been since January 2015.
Looking to the future, rates could begin to trend in either direction based on economy data that will be released later in the week. However, some analysts believe these rates will break record lows in the next few months.