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Some lenders have experienced a spike in borrowers’ demand for mortgage loans following last week\u2019s rate collapse<\/a> due to softer inflation data. However, according to executives and loan officers, it’s too early to say that this marks a turning point in the shrinking mortgage market.\u00a0\u00a0<\/p>\n To illustrate how fast mortgage rates<\/a> have declined, the 30-year fixed rate decreased this week to an average of 6.61%, down from last week’s 7.08%, according to the latest purchase mortgage survey<\/a> from Freddie Mac<\/strong>. The same rates averaged 3.10% one year ago.\u00a0<\/p>\n “Mortgage rates tumbled this week due to incoming data that suggests inflation may have peaked,” Sam Khater, Freddie Mac’s chief economist, said in a statement. <\/p>\n However, according to Khater, “while the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market: inflation remains elevated, the Federal Reserve<\/strong> is likely to keep interest rates high and consumers will continue to feel the impact.”<\/p>\n Other executives echoed Khater\u2019s sentiments. <\/p>\n “We’re seeing some relief,” Frank Capobianco, senior vice president at Cardinal Financial Company,<\/strong> said. “But many people are hesitant to say that this is the turning point until they see the December’s CPI numbers and the decision from the December’s Fed meeting.” <\/p>\n “J.R.” Samsing, vice president at Offerpad Home Loans, <\/strong>agreed, stating that “unfortunately,” the market has not reached a turning point \u2013 at least not yet. <\/p>\n “The recent rate decreases have definitely helped, but affordability remains a concern. I do believe if we can maintain some stability in mortgage rates at this level, we will begin to see a greater number of prospective buyers re-enter the market,” Samsing said. <\/p>\n Susan DeMello, a Virginia-based loan officer for PNC Mortgage<\/strong>, said she is still expecting to see an increase in loan production due to lower mortgage rates. <\/p>\n “The markets go up quickly and down slowly,” the LO told HousingWire.\u00a0<\/p>\n Mortgage rates had been trending up with the Fed’s consecutive interest rate hikes, which are a bid to combat persistent inflation. However, the U.S. Bureau of Labor Statistics<\/strong> reported last week that the consumer price index<\/a> (CPI) rose by 7.7% year over year in October, marking the smallest 12-month increase since the year ending in January 2022. That’s slightly below the 7.9% estimated by the markets. <\/p>\n Consequently, mortgage rates have started on a downward trend. According to HousingWire’s<\/strong> Mortgage Rates Center<\/a>, Black Knight’s<\/strong> Optimal Blue OBMMI pricing engine, which includes some refinancing products, measured the 30-year conforming rate at 6.59% on Wednesday, down from 7.09% the previous week. Meanwhile, the 30-year fixed-rate jumbo (greater than $647,200) decreased from 6.97% to 6.72%.<\/p>\n Mortgage rates were 6.64%<\/a> for conforming loans on Wednesday, according to Mortgage News Daily<\/strong>. <\/p>\nUptick in demand <\/strong><\/h3>\n