The contract interest rate for a 30-year mortgage loan decreased by 15 basis points, the largest drop since November 2024, to 6.73% in the last week of February, according to data from the Mortgage Bankers Association.
Mortgage rates track bond yields, which fell last week as investors sought safety amid a decline in stock prices. Yields also decreased following recent data showing a weak start to the year for the economy.
The MBA refinancing index surged by 37%, reaching its highest level since early October, while purchase mortgage applications increased by more than 9%. The rise in purchase applications marked the first increase since mid-January, following the MBA's revision of the previous week's gain.
