Mortgage interest rates dropped for the fourth straight week last week, spurring both current homeowners and potential homebuyers to call their lenders. Total mortgage application volume increased 7.1% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.30% from 6.37%, with points falling to 0.58 from 0.59, including the origination fee, for loans with a 20% down payment. That is the lowest level since September 2024.

Refinance demand, which is most sensitive to interest rate changes, jumped 9% for the week and was 111% higher than the same week one year ago. Last year at this time, the average rate on

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