Refinancing surged in September, marking the biggest monthly jump since 2020 as mortgage rates dipped below 6.5% for the first time in nearly a year. The Mortgage Bankers Association reported that overall mortgage application volume rose 29.7% from August and 29.6% year over year. Refinancing activity led the increase, soaring 54.2%, while purchase applications climbed 7.7%.
Falling rates spurred homeowners to act, especially those with larger loans. The average refinance loan size jumped 22.3% to $410,000, the largest monthly increase since tracking began in 2011. Purchase loan sizes also edged up 1.6% to $436,000, and the average loan amount across all types rose 9.2% to $423,000, signaling renewed momentum in the housing market.