Due to Interest Rate Drop... US Mortgage Applications Increase by 7.1% Week-over-Week

[Image source=AP Yonhap News]

The Mortgage Bankers Association announced on the 13th (local time) that the number of weekly mortgage applications in the United States increased by 7.1% compared to the previous week. The previous week recorded a 9.7% increase.

The reason for the high number of weekly mortgage applications for two consecutive weeks is due to the drop in interest rates. The average interest rate for a 30-year fixed-rate mortgage fell from 7.02% last week to 6.84% this week. This is the largest decline in the past three months.

Bloomberg reported, "As U.S. mortgage rates fell below 7% for the first time in a month, mortgage applications for home purchases increased."