Mortgage applications at Bank of America (BAC) rose 80% from January to March, boosted by improved housing supply and lower bond yields, Reuters reported Thursday, citing the bank's head of consumer lending, Matt Vernon.
Reuters quoted Vernon as saying the increase exceeded typical seasonal trends, with buyers responding to a drop in US 10-year yields in September 2024, which helped lower mortgage rates below 7%.
The 30-year fixed mortgage rate stands at 6.7%, down from 7% a year earlier, according to LSEG data cited by Reuters.
Bank of America also noted a slight uptick in refinancing, though most existing loans have rates below 6%, implying that further reductions would be needed to drive stronger demand, the report said.
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