• Mortgage rates are at the lowest level since September, and that is bringing new demand into the mortgage market.
  • The average contract interest rate for 30-year fixed-rate mortgages decreased last week to 6.23% from 6.42%.
  • Applications for a mortgage to purchase a home increased 25% week to week, but were 35% lower than the same week one year ago.

Consumers returned from the holiday season to find mortgage rates at their lowest point since September, and they are responding in dramatic fashion.

Mortgage application volume jumped nearly 28% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.