The United States' home purchase application index has climbed to its highest level since 2023.

The number of mortgage loan applications for home purchases in the United States rose to the highest level since January 2023 last week, indicating that further reduction in financing costs is driving a revival in the housing market. Data released by the Mortgage Bankers Association on Wednesday showed that the association's purchase application index rose by 5.1% as of the week ending January 16. The 30-year mortgage contract rate fell by 2 basis points to 6.16%, still the lowest level since September 2024. Lower housing financing costs also helped push the MBA's refinancing index up by over 20% on top of a 40.1% increase the previous week. The overall index for mortgage activities has been rising for the third consecutive week. The continuous improvement in mortgage activities indicates that the housing market, which is still troubled by weak purchasing power, is showing initial momentum. However, it is unclear whether the decline in mortgage rates can continue.