Mortgage applications have surged to their highest levels since July 2022, with a notable 11% increase in the week ending September 20, driven primarily by homeowners looking to refinance as mortgage rates decline.

Refinancing applications rose 20% during this period, comprising nearly 56% of all applications, according to the Mortgage Bankers Association (MBA).

The average rate on a 30-year fixed mortgage dropped to 6.09%, down over a percentage point from the previous year, Yahoo Finance has reported.

This uptick comes after a slow summer homebuying season, marked by high prices and limited inventory, although new home sales fell 4.7% in August compared to the previous month.

Written by B.C. Begley