Mortgage Interest Rates Fall to Lowest Level Since September, Mortgage Demand Rises

For the third week in a row, mortgage interest rates fell, triggering a 7% increase in mortgage applications.

learn more about Madeline Garfinkle

By Madeline Garfinkle • Jan 1, 2023 Originally published Jan 1, 2023

Peter Dazeley | Getty Images

Mortgage interest rates fell for the third straight week, bringing rates to their lowest level since September. As rates drop, mortgage applications are beginning to roll in after a lull in the market.

The average 30-year fixed mortgage rate fell to 6.46% from 6.56% last week, according to Meanwhile, applications to refinance a home loan rose 15% from last week, CNBC reported. Although the uptick is significant, it's still 77% lower than it was the same week a year ago. Rates are now the lowest they have been since September, but those rates were at new highs, causing mortgage applications to drop at the time.

Related: Home Builders Are Taking a New Approach To Excess Inventory: Targeting Investors

In 2022, the housing market experienced new levels of demand and competition, causing home prices across the country to soar and pricing out millions of would-be buyers. However, as interest rates fall and certain markets begin to cool, buyers could begin swooping in for the price drops they have been anticipating.

"Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market," Joel Kan, an MBA economist, told CNBC. "Many have been waiting for affordability challenges to subside."

Related: The Housing Market Is Cooling the Fastest in These 10 Cities

Madeline Garfinkle

Entrepreneur Staff

Editorial Assistant

Madeline Garfinkle is an Editorial Assistant at She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Related Topics

Editor's Pick

This Co-Founder Was Kicked Out of Retailers for Pitching a 'Taboo' Beauty Product. Now, Her Multi-Million-Dollar Company Sells It for More Than $20 an Ounce.
Have You Ever Obsessed Over 'What If'? According to Scientists, You Don't Actually Know What Would Have Fixed Everything.
Most People Don't Know These 2 Things Are Resume Red Flags. A Career Expert Reveals How to Work Around Them.
Business News

Massive Fire At Top Egg Farm Leaves Estimated 100,000 Hens Dead. What Does This Mean For Egg Prices?

Hillandale Farms in Bozrah, Connecticut went up in flames on Saturday in an incident that is still under investigation.

Business News

These Two Cars Are Stolen So Often Insurance Won't Cover Them

Progressive and State Farm have dropped some older Hyundai and Kia models after learning that a design flaw makes them easy to start without a key.

Business Solutions

5 Procurement Trends To Keep on Your Radar for 2023

Procurement professionals must adapt to inflation and a shortage of skilled labor in the face of an economic recession. Investing in a workforce paired with retraining and development strategies will put your company on top amid economic uncertainty.

Business News

Out With the Kibble and In With the Steak. The World's Richest Dog Has a Net Worth of $400 Million – And a New Netflix Docuseries Too

'Gunther's Millions' is set to unpack the pooch's mysterious fortune and what those around him have done with his inheritance.

Business News

'This Culture Of Secrecy Is Not Okay': Former Apple Employee Celebrates NLRB Decision That It Violated Worker Rights

Ashley Gjøvik complained Tim Cook violated worker rights by telling employees not to speak to the media.