Mortgage applications jumped 20% last week, according to the Mortgage Bankers Association (MBA), in its weekly survey of the market. Purchase applications increased 10% over the previous week on an unadjusted basis and refinances rose 35%.

Economic uncertainty around a global trade war led interest rates to drop, according to the MBA. The trade association said the 30-year fixed rate mortgage dropped to 6.61%, the lowest since October. (Freddie Mac had the 30-year rate slightly higher at 6.64%.)

“Both homebuyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24% higher than a year ago to the strongest pace since January 2024,” said Joel Kan, MBA’s vice president and deputy chief economist, in a statement.

It was a strong showing, especially after mortgage applications dropped 1.6% and 2% the previous two week, respectively. Both purchases and refinances in the current survey were stronger than a year. Refinances were up 93% higher than the same week in 2024 and purchase applications were up 24%.

The refinance share of the market increased to 43.6% of total applications from 38.6% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.6% of total applications.

The Federal Housing Administration share of total applications increased to 16.3% from 15.8% the week prior. The U.S. Department of Veterans Affairs share of total applications increased to 15.7% from 14.4% the week prior. The U.S. Department of Agriculture share of total applications remained unchanged at 0.5% from the week prior.