US mortgage applications to purchase a home jumped to the highest level since early 2023 last week, even as borrowing costs barely budged.
The Mortgage Bankers Association's index of home-purchase applications advanced 9.4% in the week ended July 4, according to data out Wednesday. MBA's measure of refinancing jumped by a similar amount to the highest level since April.
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While the figures are adjusted for seasonal effects, they are still prone to wide swings around holidays like Independence Day. And even with the increases, both gauges are still well below their pre-pandemic levels.
The contract rate on a 30-year fixed mortgage dropped just 2 basis points to 6.77% last week. Economists and real estate agents have said that a sustained drop in home financing costs is needed to reinvigorate the housing market, which is also hamstrung by high prices.
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The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
