Mortgage demand rises to take advantage of lower rates

Mortgage loan applications increased 11% in the last week of February from the week before, a survey conducted by the Mortgage Bankers Association (MBA) shows.  

The MBA reported that, compared to the week previous, a 6.1% rise was seen in mortgage applications to purchase a home while refinance applications jumped 14.3%. Compared to the same week one year earlier, refinance applications were up 109%, while applications to purchase a home were up 10%. 

These increases in mortgage demands come as mortgage rates have hovered around the lowest levels since 2022. Lower mortgage interest rates are beneficial to current or prospective homeowners looking to save as much as they can with their home loans. Having a lower rate on your mortgage will mean less interest paid over the life of your loan. 

Are you looking to take advantage of current mortgage rates being lower? Apply for a home loan or refinance today! 

Today, the national average for a 30-year fixed-rate mortgage is 6.022%, with rates at 5.349% for a 15-year fixed-rate mortgage*. 

While these numbers are slightly higher than rates in early to mid-January, they are still quite a bit lower than mortgage rates in the past year.  

Compared to last year, both the 15-year and 30-year fixed-rate mortgages are significantly lower. 

30-year fixed-rate mortgages have seen a drop of about 80 basis points in the past year, while 15-year fixed-rate mortgages have dropped about 50 basis points. Basis points refer to any numbers after the decimal point in rate percentages. 

Mortgage interest rates can be volatile and react to the market as well as economic conditions and geopolitical events. Because of the unpredictable nature of all these factors, mortgage rates are hard to predict. 

Many experts believe that mortgage rates will stay in the low- to mid-6 range. However, these lower numbers might not last, and we could see rates rise to as high as 7% at some point. 

If you are looking to take advantage of lower mortgage rates, now is a great time to enter the housing market, refinance your current home loan or tap into home equity. 

If you have been waiting to enter the housing market, lower mortgage rates might be just what you were waiting for. Lower mortgage rates when you get a home loan could mean lower interest and monthly payments over the life of your loan, making homeownership more affordable. 

Those who are homeowners may look at ways in which they can save a little on their monthly payments. If current mortgage rates are lower than what you have, refinancing your home loan could reduce the interest you pay every month**. 

For homeowners not looking to refinance their current mortgage, tapping into home equity would be one way to take advantage of low rates. Tapping into home equity through a loan like a HELOC*** offers homeowners funds based on the difference between their home’s value and their remaining mortgage balance. HELOCs offer funds in the form of a line of credit, which they can draw on for a period of time while only paying interest. After this period, homeowners will have to pay back funds borrowed and interest. 

Take advantage of current rates when starting an application for a home loan, refinance or HELOC. 

_{*National average rates accurate as of 03/03/26 and are not advertised rates from Rate.} 

_{**Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Rate for current rates. Restrictions apply.} 

_{***Rate home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Kentucky, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Rate for more information and to discuss your individual circumstances. Restrictions Apply.} 

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.} 

_{All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.}