A sharp drop in mortgage interest rates finally got some homebuyers off the fence. It also helped more current homeowners save on their monthly payments

Total mortgage application volume jumped 9.2% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The week's results include an adjustment for the Labor Day holiday.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.49% from 6.64%, with points falling to 0.56 from 0.59, including the origination fee, for loans with a 20% down payment.

"Mortgage rates declined for the second consecutive week as Treasury yields moved lower on data indicating that the labor market is weakening," said Joel Kan,

See Full Page