WASHINGTON–Mortgage activity took a big jump last week following three weeks of decline, hitting their highest levels since September of 2024, according to new data from the Mortgage Bankers Association.

Lower interest rates spurred an increase of 20% in total application volume for the week ending April 4, according to the MBA.

Joel Kan, deputy chief economist with the MBA, said the surge was “driven by purchase and refinance applications picking up in a volatile week where economic uncertainty caused rates to drop across the board.”

Kan pointed out that the 30-year fixed mortgage rate averaged 6.61%, the lowest rate since October 2024.

“Both homebuyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24% higher than a year ago to the strongest pace since January 2024,” Kan added in a statement.

What the Data Show

The MBA reported its Refinance Index rose 35% from the prior week and was 93% higher than the same week in 2024. The refinance share of total mortgage activity jumped to 43.6%, up from 38.6% the week prior.

“Refinance applications rose by 35 percent to the highest level in six months, as borrowers with larger loan sizes tend to be more sensitive to rate changes,” Kan said in a statement. “The average refinance loan size jumped to its second highest in the survey at $399,600.”