(Bloomberg) -- US mortgage rates declined for a fourth straight week, boosting home-purchase applications by the most since mid-April and giving a tiny spark to the deflated housing market.

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The contract rate on a 30-year fixed mortgage fell 9 basis points to 7.21% in the week ended Nov. 6, according to data released Wednesday by the Mortgage Bankers Association. Borrowing costs have fallen nearly 30 basis points from an almost two-year high of 7.5% early last month, although they remain prohibitively high for many Americans.

A gauge of loan applications for home purchases jumped 7.5%, marking just the second weekly increase since the end of August. The group's refinance index rose 4.5%. The measure, which has advanced three straight weeks, is still near the lowest level since January 2025.

While the drop in rates is welcome news for the housing market, it may take a sustained decline to motivate potential buyers. Contract signings on previously owned homes dropped to a record low in September following a rapid run-up in mortgage rates during the month.

On Thursday, the National Association of Realtors will release figures on existing-home closings in October. The median forecast in a Bloomberg survey of economists calls for a decline to the lowest level since 2010.

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