Activity in the housing market showed a rebound in the past week as mortgages rates fell for a fifth straight week.

The 30-year fixed mortgage rate inched lower to 6.18%.

The Purchase Index increased 3% from one week earlier. 

Interest was seen in one particular area, according to the Mortgage Bankers Association's weekly survey.

US HOME PRICES SLIDE IN NOVEMBER FOR FIFTH STRAIGHT MONTH

"The average loan size on a purchase application increased to $428,500 – the largest average since May 2022," said Joel Kan, MBA’s vice president and deputy chief economist. "This increase is a sign that the recent upward trend in purchase activity remains skewed toward larger loan sizes and less first-time homebuyer activity, as entry level housing remains undersupplied, and buyers struggle with affordability in many markets."

Overall, mortgage loan application volume increased 7.4% from a week earlier.

PENDING HOME SALES INCREASE FOR FIRST TIME IN 7 MONTHS IN DECEMBER

"Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of lower rates," added Kan. "Overall applications remained 58% lower than a year ago and rates are still significantly higher, however, this week’s results are a step in the right direction."

The Refinance Index saw a big jump, rising 18% from the previous week.

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The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.