The decline in mortgage applications spanning three weeks has been halted as 30-year rates experienced the largest decrease in over a year.

There are indications that the mortgage market is starting to see some positive signs after a prolonged period of decline. According to the Mortgage Bankers Association (MBA), mortgage applications rose by 2.5% for the week ending Nov. 3, breaking a three-week streak of decreases. This increase in mortgage activity coincided with a significant drop in U.S. Treasury yields, as investors evaluated the Federal Reserve’s stance on interest rates and buyers’ willingness to accept high-interest loans. The average 30-year fixed rate on mortgages decreased to 7.61% from the previous week’s average, marking the largest weekly decline since July 2022. Last week’s decrease in rates was influenced by factors such as the U.S. Treasury’s issuance update, the November FOMC statement from the Fed, and a slower job market. This news has also led to a rise in real estate stocks, with the Real Estate Select Sector SPDR Fund experiencing a 0.6% increase. The drop in quarterly borrowing forecast by the U.S. Treasury from $852 billion to $776 billion and the Federal Reserve’s decision to keep interest rates steady have both contributed to the decline in Treasury rates. As a result, popular exchange-traded funds focusing on U.S. Treasuries have seen rises in their values.