The volume of mortgage applications in the US surged by 29.7% from the previous week in the period ending September 12th, the sharpest growth rate since January and the second-highest since interest rates crashed in March of 2020, according to data from the Mortgage Bankers Association. The result aligned with a 10bps plunge in benchmark mortgage rates, extending the 15bps drop on the previous week to their lowest in nearly one year, as a wave of pessimistic labor market data drove yields on long-dated Treasury securities to plunge. Application volumes for a contract to refinance a mortgage, which is more sensitive to short term changes in interest rates, surged by 60% from the previous week, with average loan sizes reaching a series-high. In turn, applications for a mortgage to buy a new home inched 3% higher.