Mortgage rates tumble, marking largest weekly drop in a year

Core Insights - Mortgage rates have experienced the largest weekly drop in the past year, with the average rate on a 30-year fixed mortgage falling to 6.35% from 6.5% [1][3] - The average rate on a 15-year fixed mortgage decreased to 5.5% from 5.6% [3][5] - The increase in mortgage applications reached a 9.2% rise last week, marking the highest growth in over three years [4] Mortgage Rate Trends - The average rate on a 30-year fixed mortgage was 6.2% a year ago, indicating a year-over-year increase [1] - The average rate on a 15-year fixed mortgage was 5.27% a year ago, showing a slight increase from the current rate [3] Application Activity - The Mortgage Bankers Association reported that the index tracking applications to refinance a mortgage increased by 12.2%, accounting for nearly half of all applications last week [4] - The index tracking loans for property purchases rose by 6.6%, reaching its highest level in about two months [5] Market Conditions - The housing market has been facing challenges due to high borrowing costs, elevated property prices, and limited supply, but recent data suggests improvement [6] - The supply of existing homes for sale is gradually increasing, and annual price increases are leveling off, indicating a potential recovery in the housing sector [6]