Last week, the housing market proved that even the slightest change could make a huge difference in the number of Americans ready to take the housing plunge, or get a better rate through a refinance. This was evident after a small rate dip caused a note-worthy jump in loan applications – 11.3%, according to the Mortgage Bankers Association.
The cause for the brief rate fluctuation was a “strong sell-off in the U.S stock market,” according to CNBC. Homebuyers interested in jumbo loans, or loans that are for an amount greater than $417,000, were especially attracted by the temporary rate dip – and the savings related to it.
"Although mortgage rates were unchanged for the week, Treasury rates were down sharply early in the week due to the global stock market rout and this led to a significant increase in application volume," Mike Fratantoni, the chief economist for the Mortgage Bankers Association, said.