Mortgage applications increased 20.4% in the final week of February compared to the week prior, according to a survey by the Mortgage Bankers Association (MBA). Refinances increased by a whopping 37%, the fastest pace since October. That was 83% higher than the same week last year.

Mortgage rates dropping to the lowest point since December likely convinced many consumers to make a move, said Joel Kan, MBA’s vice president and deputy chief economist, in a statement. Freddie Mac has interest rates on a 30-year fixed rate mortgage at 6.76%.

“Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S.,” Kan said. “Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024.”

The purchase market also felt a boost. Purchase applications increased 9% week over week, 2% higher than the week before.

“Purchase activity typically ramps up this time of year and did last week, continuing its run ahead of last year’s pace,” Kan said. “These are more green shoots as we head into the spring homebuying season.”

The refinance share of mortgage activity increased to 43.8 % of total applications from 38.9% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.8% of total applications.

The Federal Housing Administration share of total applications decreased to 16.7%  from 17.4% the week prior. The U.S. Department of Veterans Affairs share of total applications increased to 14.6% from 13.4% the week prior. The U.S. Department of Agriculture share of total applications remained unchanged at 0.5% from the week prior.